1

Sir,

1) I am presenting the Budget for the Financial Year

2020-21 before this August House against the backdrop

of the unusual challenges being faced by our nation.

Before entering into the Budget proposals we have to

perceive the gravity of the situation.

I

PREFACE

Menace of Communalism

2) Democracy and dictatorship are standing face to face in

India. The rulers in Delhi speak only in the language of

hatred and rancour. Their followers consider violence

and attack as their karma. The administrative set up

has completely yielded to communalism. Generally

speaking, this is the India of today.

3) Sir, Let me quote the doubt raised by Anand in the

article, ‘The pathways before a nation’, “how could a

society so highly educated and standing at the forefront

of intellectual world, be suddenly possessed by hatred

towards a community and indulge in unbelievable

crimes?”

4) Anwar Ali wrote about the times we live,

‘When things undreamed of

in our minds

Whirl in like stormy winds,

We are living in times’.

2

O.P. Suresh literally encapsulated this situation thus,

‘Malice is the pennant,

Terrorism, the diplomacy,

Attack, the mode of greeting

Every citizen, a mighty explosion’.

The anxiety spread by the amendment to Citizenship Act

and National Register of Citizens is beyond words.

‘Fear is a nation,

Silence is an ornament there’.

We have to remember that these are the lines written by

Drupath Gautham, a 15 year old higher secondary

student at Meenangadi in Wayanad. Fear has engulfed

even the imagination of our children.

The threat of detention camps is hanging over the heads

of 19 lakh Assamese, who have lived as Indians till

yesterday.

‘Just like a house incorrectly drawn,

was wiped out by a child

with an eraser’.

P.N. Gopikrishnan has written about loss of house. With

the same lucidity the rulers are getting ready to erase

the citizenship rights of the people. But, Sir, we cannot

give in to this threat. The future of the nation is in the

youth who thronged the street taking the pledge not to

give up India. Agitations are rising up everywhere in the

country against the Citizenship Amendment Act that

undermines the very essence of the Constitution.

3

5) We are passing through a period of the biggest agitation

in the history of independent India. Students, youth and

women are at the forefront of this struggle.

As pointed out by Prabha Varma,

‘The campuses are resonating with curled fists

That declare they wouldn’t yield an inch

To the fear emanating

From reverberations of guffaws,

The murk of echoing cries,

And eternal black scorpion lashings of

hatred’.

Vinod Vaishakhi’s lines are also a true picture of this

reverberation.

‘Over the snow

Girls gleaming like torches,

Cry out “Sanghvad Se Azadi’

‘We, we are the youth

You cannot but fall

into garbage heaps’.

The aspiration of Refeeq Ahammed will definitely

become a reality.

6) Sir, which Keralite can’t be enthused by the fact that

Kerala provided the moral leadership to these

agitations? Kerala is already a model to India in many

4

areas. Kerala shall create a new model of unity, when

the country is facing a threat to its very existence. The

joint agitation organised against the amendment to

Citizenship Act by LDF and UDF, keeping away their

differences was a surprise to other States. Chief Minister

and Opposition Leader sitting at Sathyagraha on the

same agitation platform was a powerful message to the

whole nation. Then the legislature of Kerala

unanimously passed a resolution against this communal

amendment. Even at the time of filing a case against

the Central Government in the Supreme Court as per

Article 130, we were in unison. I am proud to say that

the other States in India view with wonder the unity

evolved in Kerala.

7) There is a chapter named, “Freedom”, in the novel

‘Mullappoo niramulla pakalukal’by Benyamin. The

chapter begin thus, “by three o’ clock in the afternoon,

people began to slowly flow along the streets………

Some held the national flag and some others the white

flag of peace. Some others moved draped in the

national flag. This nation does not belong to anybody

else, but it is ours”. This was the message given by

them. Wasn’t Benyamin predicting the act ofKerala

which stood along the National Highway holding hand in

hand on 26th January 2020? I recollect the words of

KGS that there is nothing more beautiful than the virtue

that gathers up tocalm the clamour. The ‘human chain’

revealed the beauty of virtue.

5

Nation in Economic Recession

8) The financial stagnation engulfing the Nation and the

suffering of the people are not a problem for the rulers at

the Centre. Their greatest issue is the amendment to

Citizenship Act. Indian economy is moving towards an

economic downturn similar to the one faced in the year

2009. Even the Central Government has admitted that

the annual growth ratein 2019-20 would be below 5%.

The reason for this is the short fall in the total demand in

the economy, ie.,in consumption, investment and export.

Unemployment is at an all time high. The per capita

consumption is lower than that in 2011-12. Food inflation

has reached 14 percentage. Life has become a misery.

9) How did the nations of the world, including India,

overcome such a situation in 2009? Government raised

the demand by enhancing expenditure. Fiscal deficit

was allowed to go up for the purpose. But the present

stand of the Central Government is contrary to this. The

tax revenue of the government has come down due to

economic recession. The stand now being taken by the

Central Government is to reduce the expenditure. If the

Government also reacts the way individual’sreact, the

recession will get more acute.

10) The perception of the Central Government is that reason

for this crisis is not the lack of demand, but issues in the

area of supply. Theyare reluctant to enhance the outlay

for Employment Guarantee Scheme. Similarly, they are

unwilling to enhance the outlay for other schemes aimed

at increasing the income and welfare of the common

man. They are not willing to provide loans at reduced

6

rates to common man for purchase of houses and

consumables. Instead, large scale tax rebates are doled

out to the Corporates. Anti-labour reforms are being

intensified. Privatisation is accelerated.

11) This supply-side economics of the Central Government

has imposed an unbearable burden on the farmers and

labourers. The national strike on January 8 was a

splendid demonstration of public resistance against this

approach. Kerala was at the forefront of this national

strike.

‘What if they have never swarmed in protest?

Today, raising their firsts in front of the horde,

Stands the old.

The children who went to learn history,

Water the streets with their own blood

To create history’.

In this way Vishnu Prasad etched the context.

Discrimination of the Centre

12) The Central Government is stealing the powers of the

states in all areas as their unilateral decision to amend

the Citizenship Act. The federal nature of Indian

Constitution is getting diluted every day. The incursion

of Central Government into the State Lists,nullifyingthe

Seventh Schedule has become so rampant. Executive

power is also being misused. The G.S.T. Council, the

Fiscal Responsibility Act and the 15thCentral Finance

Commission all seem to have deprived the state

governmentsof theirentire fiscal freedom.

7

13) It is apparent that the economic policy of the Central

Government is to strangle the state

governmentfinancially. 3% of the internal revenue of the

state is allowed as loan. Based on this, an amount of

₹24915 crore was earmarked in the state budget. But

by the middle of the financial year, the Central

Government informed that ₹5325 crore would be cut off

from the loan amount. Even by this criteria, we had the

right to borrow ₹4900 crore in the last quarter. But from

this, ₹3000 crore was again slashed arbitrarily. Hence

we now have permission to avail loan only for

₹1920 crore. From this amount, ₹1400 crore has to be

paid to Central Government as repayment of loan

availed in 2009. In effect, the state government has no

scope for availing any loan during the last quarter of the

current financial year.

14) Grants from Central Government are also being cut

short. The Central Government is not ready to give the

due GST compensation for the month of December

2019. The arrear will cross ₹3000 crore in February.

In addition to this, there is indication that ₹6866 crore

received as tax share for the last quarter of the previous

financial year would come down to ₹4525 crore during

the current financial year. Thus there will be a total

short fall of ₹8330 crore in the Central assistance,

including loans, for the months of January, February

and March 2020. This has put unprecedented financial

constraints on the state exchequer.

15) There are also huge amounts pending to be released

from the Centrally Sponsored Schemes. Yesterday, the

8

arrear of National Rural Employment Guarantee

Scheme was received six months late. An amount of

₹1035 crore needs to be received from the Centre for

the already procured paddy. As a result, loans provided

by banks to farmers as paddy price have become

arrears. Further more, Centre has excluded Kerala from

flood relief assistance of 2019. Foreign loans availed for

flood related reconstruction were also included in the

normal annual borrowing limit. The Central Government

has unilaterally retracted from the assurance given in

the GST Council that the foreign loans availed for

reconstruction would be considered outside the normal

borrowing limit.

16) The reason cited by the Central Government for

curtailing the borrowing limit is that there had been an

increase of more than ₹6000 crore as treasury deposit

during 2016-17 than what was mentioned in the budget.

The contention of the State Government, that a

significant portion of the amount deposited in

Treasuryhad been the unspent balance of various

departments, has not been accepted by the Central

Government. Another factoris that many employees and

pensioners had kept their arrear emoluments in treasury

as fixed deposits. Until 2016-17, no other government

at the centerhad taken a policy of considering such

deposits as state government’s loan and curtailingthe

borrowing limit in the succeeding year. But, even after

three years, the BJP government is curtailing loans on

account of this. The Central Government is adopting

9

such an approach without any consideration for the

financialproblems of the state.

Financial Crisis

17) The average growth of the state expenditure during the

period from 2013-14 to 2018-19 was 16.13 %, whereas

the revenue income during the period rose only by13.26

%. This gap between income and expenditure has

accelerated the crisis. During the period of last LDF

government,the revenue deficit could be reduced and

the state could be led towards a stable financial path by

increasing revenue income by 18 – 20%. However, the

expected gainin GST collection has not been

materialised.

18) Being a consumer state GST for Kerala should have

been beneficial. The lion’s share of our consumer

goods are coming from other states. If it is ensured that

these goods are transported through e-way bills, the tax

evasion could be prevented. But live downloading of

e-way bills has not been made so far.Similarly, tax

evasion could be prevented only if annual returns are

available for scrutiny. After a long wait, the annual

returns of first year were received only in last December.

The steep cut effected in the GST rate, just before the

last Lok Sabha elections, was also a set back.

Recession has also adversely affected tax collection.

It is expected that there will be a short fall of ₹10113

crore in the anticipated tax income of this year.

10

A leap in Developmental Achievements

19) Let me emphasis the fact that, any developmental

stagnation in the state was not permitted due to this

financial crisis. This government, within a span of four

years, has surpassed the five year performance of the

previous government.

i) The previous government had disbursed

₹9311 crore for Welfare Pensions. Now, on

completion of its 4th year, the LDF government has

crossed ₹22000 crore. Social security pension

has been given to 13 lakh old age people. Sir, all

Welfare Pensions are enhanced to ₹1300/-.

ii) The total outlay for the Local Self Government

Institutions which had been ₹7679 crore during

2015-16 is enhanced to ₹12074 crore in 2020-21.

The outlay is raised from 24 percentage to 25.93

percentage. Sir, in addition to this, ₹1000 crore is

additionally allocated for the Chief Minister’s Rural

Road Rebuild Scheme implemented through Local

Government Institutions. Including this, the outlay

for the road rebuild scheme is ₹2500 crore.

iii) In 2015-16, an amount of ₹188 crore had been

expended for coastal development including

Tsunami Schemes. Sir, the total outlay for coastal

scheme is raised to ₹380 crore. Including this,

₹1000 crore is earmarked for coastal package in

2020-21.

iv) During the period of the previous government, an

amount of ₹503 crore had been spent from the

Chief Minister’s Distress Relief Fund. But during

11

the four years of the LDF government, the amount

has surpassed ₹1216 crore. Apart from this,

₹2851 crore has been disbursed as flood relief.

v) During the tenure of the previous government, the

total capital expenditure provided in the budget

was ₹29689 crore. Whereas the total expenditure

provided in the budget for the last 4 years of the

LDF government was ₹40497 crore. Sir, the

capital expenditure was ₹8342crore in 2015-16. In

2020-21capital expenditure is raised to

₹14428 crore.

vi) The Public Works Department had repaired or

renovated 7780 Km road during the period

2011-16. But 14623 Km of roads were completed

and 68 bridges were constructed during the period

2016-19. Sir, ₹1102 crore is earmarked in the

budget for Public Works. ₹1500 crore is

additionally sanctioned for the works proposed by

Legislators and 20 percentage of the required fund

is earmarked for this.

vii) During the period of the previous Government,

4.9 lakh drinking water connections were provided

by Kerala Water Authority. The LDF Government

have provided 7.5 lakh connections so far.

2.5 lakh more houses will be given water

connection in 2020-21.

viii) The previous Government had spent ₹7191 crore

for health related schemes. LDF Government

have already spent ₹9651 crore. Sir, the number

of outpatients in government hospitals has

12

increased to 3.3 crore from 1.2 crore and the

number of inpatients has escalated to 9 lakh from

5.4 lakh.

ix) Around 5 lakh students have additionally joined

public schools in standards II to X. As a result of

this, a significant increase was seen in the overall

number of students in public schools. The number

had been steadily falling until 2016. The number

of students had come down to 499450 in public

schools during the tenure of previous government.

x) So far 258658 houses have been constructed

through Life Mission and other agencies. Sir,

1 lakh houses / flats will be constructed in 2020-21.

xi) 14 lakh families were sanctioned new electric

connection. Total electrification has been

accomplished. Transmission and distribution

losses were reduced to 13.4% and 15%

respectively. This government have additionally

generated 205 Mega Watt electricity whereas, it

was 87 Mega Watt during the period of the

previous Government. 500 Mega Watt installed

capacity will additionally be created in 2020-21.

xii) NORKA Welfare fund membership rose to 4.7 lakh

from 1.1 lakh. The previous Government had

spent ₹68 crore for the welfare of NRKs. This

Government has already spent ₹152 crore. The

outlay for NORKA welfare is enhanced to

₹90 crore in 2020-21.

xiii) Membership of Kudumbasree has increased to

45 lakh from 40 lakh. Bank linkage loan rose to

13

₹10499 crore from ₹5717 crore. The number of

labour oriented ventures has risen to 23453 from

10177 and the number of agricultural groups has

increased to 68000 from 54000.

xiv) Till date the price of selected grocery items

supplied from Maveli Stores has not been

increased after 2015-16.

xv) 27490 number of houses were constructed for

Scheduled Castes during the tenure of previous

government. Now within 4 years, 51926 number

of houses have been constructed.

xvi) The extent of paddy land has been on the rise.

The extent of paddy land which hadbeen declining

steadily over the past few decades and was

confined to 1.7 lakh hectares in 2016-17, but has

risen to 2.03 lakh hectares during the year

2018-19. The paddy production rose to 5.8 lakh

tonne from 4.4 lakh tonne. Sir, paddy cultivation

has a vital role to maintain the ecological balance

of nature. Considering this importance ₹40 crore

is earmarked as a beginning for providing royalty

to the farmers.

xvii) The fish production in Kerala was also

plummeting. In 2015-16 this was 7.28 lakh tonne,

which now stands at 8.02 lakh tonne.

xviii) The production of Public Sector Undertakings that

stoodat ₹2799 crore in 2015-16 rose to

₹3442 crore in 2018-19. The cumulative loss of

₹213 crore in 2015-16 has now turned into a

cumulative profit of ₹102 crore.

14

xix) 1.83 lakh jobs, ₹4700 crore investment and

52137 new enterprises in small scale sector have

been ensured during the period of this

government.

xx) The economic growth of Kerala that stood at

4.9 percentage during 2011-12/2015-16 has risen

to 7.2 percentage during the period of

2016-17/2018-19. The economic growth of Kerala

that had been below the national average in the

earlier period has now gone above the national

average. Sir, surmounting adverse circumstances

we were able to make the development of Kerala a

reality.

II

LARGE SCALE INVESTMENT PROJECTS

KIIFB and Anti-Recession Package

20) The experiences of the last four years make us

confident that we could overcome the recession.

Government had declared anti-recession package in the

budget of 2016-17, with the foresight regarding the

grave situation that might occur due to Gulf crisis and

slump in cash crop prices. Under the Indian federal

system, it is not possible to formulate anti-recession

package by means of borrowing included in the budget

without the concurrence of the Central Government. On

the contrary, the Central Government is reducing

expenditure of the state governmentsthrough constrains

even during the recession period. It is an insane act

comparable to that of demonetisation. Against this back

15

drop of the preposterous economic policy of the Central

Government, it was decided to invest a capital of

₹50000 crore through KIIFB funding as loan outside the

budget. The Act for this purpose was unanimously

passed by this August House. The opposition has been

criticising this investment project as a day dream

because of its sheer complexity and enormity. But now

everybody is eying to obtain more and more projects

through KIIFB.

21) KIIFB has already sanctioned 675 projects worth

₹35028 crore. Apart from this KIIFB has approved

projects worth ₹14275 crore for land acquisition for

industrial parks and ₹5374 crore for land acquisition for

National Highways. Thus, the total outlay of the projects

approved by KIIFB amounts to ₹54678 crore. Of this,

tender has been floated for projects worth ₹13616 crore

and work has been completed for projects worth of

₹4500 crore.

22) Thereafter, criticism was about the non-availability of

funds. However, the sceptics were silenced by the

success of Masala Bonds. The next apprehension was

about the repayment of debt. As envisaged in the KIIFB

Act, passed by this August House, the collection of half

of the motor vehicle tax along with petrol cess for

15 years will be sufficient for KIIFB to repay the loan and

interest. You may recollect this, as it was discussed in

detail in this house earlier.

23) Sir, steps have been completed to spend ₹20000 crore

from KIIFB in 2020-21. The KIIFB investment has been

changing the face of our state.

16

• 2985 Km of designed roads, 10 by-passes extending

to 43 Kms, 20 Flyovers over 22 Kms, 74 bridges over

53 Kms.

• North-South water way from Kovalam to Bekal.

• Transgrid 2.0 project that ensures electricity up to the

year 2040.

• K-Phone project that provides free Internet

connectivity to weaker sections.

• 57 lakh sq.feet new school buildings and complete

digitalisation.

• 33 lakh sq.feet University and college buildings.

• 4.65 lakh sq.feet IT buildings.

• 4 lakh sq.feet Cultural Institutions.

• 44 Stadiums having a built up area of 37 lakh sq.feet.

• 46 lakh sq.feet hospital buildings, most modern

dialysis units, cardiology, oncology facilities and

equipments.

• Drinking water projects for ₹4384 crore, 1520 MLD

capacity, 2450 Km distribution pipeline, 85 lakh

consumers.

24) Sir, 237 projects will be inaugurated before 2021 March

having a built up area of 85 lakh sq.ft, 77 roads and

bridges covering a distance of 1000 Km will be opened.

The construction of all sanctioned projects will

commence and industrial parks to the extent of 5000

acres will be created.

17

25) The biggest anti-recession package being implemented

in the country is in Kerala. This will support the state

economy during the crisis period. It will be ensured that

infrastructure facilities, that normally require 25 to

30 years will be materialised in Kerala within a span of

next 3 years. The benefit of this will be available to all of

ussoon. While calculating the construction cost after

20 to 30 years, the burden of present interest is

comparatively lower. The real challenge before us is

how to complete these projects in a time bound manner

and with the assured quality.

26) Sir, In the last budget speech more than two dozen

projects capable of deep impact in the future of Kerala

had been dealt with. In the pre-budget session many

have raised queries as to what has happened to those

projects? Therefore, such an examination is relevant.

Industrial Parks and Corporate Investments

27) 15 land acquisition units will be started for KIIFB for

speedy acquisition of land specifically for industrial

parks. Half of482 acres of land acquired from FACT has

already been bought for Cochin Refinery and Petro

Chemical Parks. Measures are progressing to acquire

land for the remaining proposed industrial park and

national park. The State Government is willing to take

over Hindustan News Print along with its liabilities. At

least 500 acres of land will be available for creating a

new Industrial Park. KIIFB will fund this. KINFRA will

acquire land for Titanium Metal Complex near KMML.

18

28) All theprominent Corporate companies that had

expressed their desire to make investments in Industrial

Parks as discussed in my previous budget speech have

already commenced their operations in Kerala.

• Nissan has given employment to 800 in Technopark in

the field of data science and artificial intelligence. An

understanding has been reached to create a new

center for the electrical vehicles of the company in a

30 acre plot in Technocity.

• Taurus has commenced the work of two buildings in

Technopark having an area of 27 lakh sq.ft.

A complex with 57 lakh sq.ft will be completed before

2024.

• H R Block has operationalised 40000 sq.ft building

and given employment to 800 persons.

• Nano Space Park of VSSC is ready for opening in

Space and Aero Center of Excellence. Electronic

components meant for aero space are produced here.

VSSC has also completed A P J Abdul Kalam

Knowledge Center. Brigade Enterprises has come

forward for a building having an area of 2 lakh sq.ft.

• Tech Mahindra commenced their operation in an area

of 12000 sq.ft and provides employment to

150 persons.

• Ernest and Young provided employment to

5000 persons in Cochin and Thiruvananthapuram.

• Teranet provides employment to 500 persons in an

area of 9000 sq.ft.

19

• Fijitsu operates a joint venture with Hitachi Nissan

Center. Skeleton staff have already been appointed

for commencing the operation.

• Kerala Government has entered into an agreement

with the Airbus Company. Under this agreement, the

incubator unit of Incubator Altire Company has

commenced training in augmented reality. This is

under the Startup Mission.

• Way.com has already employed 100 persons in an

area of 6000 sq.ft.

• The joint venture Coconics has commenced

operations for manufacturing of laptops. 100 persons

have already been employed. The expected

production capacity is 2.50 lakh laptops.

29) Most prominent electronic companies in the world have

expressed their desire to invest in Kerala. Since there is

non-disclosure clause their names cannot be revealed.

In 2016 around 78000 persons were employed in IT/IT

related fields. Now the number has risen to nearly

1 lakh. In 2021, another 85000 persons are expected to

be employed here.

30) In 2016, the total area of Techno Park, Info Park and

Cyber Park was about 145 lakh sq.ft. In 2021 this will

be raised to 245 lakh sq.ft. The building of Technocity

having an area of 2 lakh sq.ft which is expected to be

completed by March has been completely booked by

various companies. Against this backdrop the

government is adopting a policy that encourages the

private companies themselves to establish parks.

20

31) In ‘Ascent 2020’ held in Ernakulam, promises for

investment more than ₹1 lakh crore were made.

Among them the biggest offer was that ofLogistics Park

of Abudabi Investment Authority worth ₹66900 crore.

Kerala Infrastructure Fund Management Ltd (KIFML), a

subsidiary of KIIFB, aims at an investment around

₹8110 crore in six projects of Bliss Edutainment

Township. 15 prominent companies have signed

Memorandum of Understanding.

32) Kerala is becoming more investment friendly. The

measures announced by the Chief Minister of Kerala will

lift Kerala to a place among the top 5 states in India in

‘ease-of-doing-business index’ within 10 years from its

present 21st position. As part of this package, Hon’ble

Chief Minister has declared a scheme for financial aid

for enterprises that create new employment

opportunities.

33) Sir, Government will give the employers of the newly

registered ventures in Kerala either the employer

contribution or one month salary of the employee as

subsidy.The limit for the maximum amount will be fixed.

In case of women employees, an additional amount of

₹2000/- will be given. For this ₹100 crore is earmarked.

Startups

34) Kerala holds the first place in the ‘startup promotion

ranking’ by the Union Ministry of Commerce in 2018.

Today, 2300 startups are working across various

sectors. Paucity of capital is the biggest issue faced by

21

them. As a solution to this, three major decisions are

announced.

35) Loans would be made available without asset security to

those who have secured work order from

Government/Quasi government/Major corporates or

Institutions. A scheme is being announced for providing

90% of work order as loan, up to a maximum of 10 crore

at an interest rate of 10%. If these are purchase orders,

money will be given after discounting them. KFC &

KSIDC will give money across the counter without any

collateral security on the recommendation of an expert

committee chaired by the IT Secretary. Any loss

sustainedon account of this will be made good by the

government.

36) Financial assistance up to ₹1 crore will be provided at

the time of expansion of new product prototypes that are

related to sustainable development goals of UNO and

are also required by any government department. For

this, an amount of ₹10 crore is provided to KFC. An

amount of ₹73.50crore is earmarked for Startup Mission

in 2020-21.

37) There has been a criticism that new companies have

their headquarters in Chennai and Bangalore since the

stamp duty in Kerala for starting and merging the

companies is higher when compared to that in

Tamilnadu and Karnataka. It will be included in the

Finance Bill to examine and rationalise the rates.

22

Energy Mission

38) Insufficient power supply and frequent power failure are

the most important problems in Kerala’s power sector.

Remedies are being found for these two issues. The

first can be resolved by constructing transmission lines.

The amount of electricity that can be brought through

the completed Kochi-Edamon corridor is equivalent to

2000 Mega Watt of installed capacity. The work of

Transgrid 2 worth ₹10000 crore has been started.

Through this, electricity power equivalent to 2000 Mega

Watt installed capacity can be brought from outside and

electricity requirements up to 2040 can be fulfilled.

Voltage deficiency and power cuts will become a thing of

past. Next thing to be resolvedis frequent interruptions in

distribution. ‘Dyuthi, 2020 Distribution Renovation

Scheme’ worth ₹4000 crore is envisaged for avoiding

the interruption by ensuring at least double lines from

11KV line to transformer. E-safe scheme will be

implemented to reduce dangers resulting from

electricity.

39) As per statistics, 2.5 crore LED bulbs were installed

during the last year. Street light and bulbs in

government institutions will be completely shifted to

LED.

• Sir, the sale of CFL and filament bulbs will be banned

from November 2020.

• Assistance will be given to initiatives like Zero

Filament at Peelicode for energy economy. The

23

scheme at Aranmula for getting rid of dangers

resulting from electricity is also exemplary.

40) The outlay for the power sector is ₹1765 crore. In

2020-21, 500 Mega Watt installed capacity will be

created mainly from solar power stations. For this, Roof

Top Solar scheme will be intensified.

Designed Roads

41) The transformation of prevailing methods in Public

Works Department into designed roads using modern

technology envisaged in the last budget is being

realised. These roads constructed under Rebuild Kerala

and KIIFB strictly adhering to the standards of Indian

Road Congress will ensure safety, surface drainage and

along with long term maintenance. Technique such as

full depth reclamation, cold recycling, thin white topping,

geo-textiles, mixtures of plastic and rubber added with

bitumen etc. are being utilised.

42) ₹1102 crore has been earmarked under Plan Scheme.

At least ₹3500crore can be expected under Non Plan for

maintenance, for new roads and for clearing pending

bills.In addition to this construction worksamounting

more than ₹25000 crore, including ₹13358 crore, ₹4500

crore from earlier Plan schemes, ₹1100 crore from

Central Road Fund, ₹1400 crore from Rebuild Kerala

and ₹800 crore from KSDP are being carried out by

Public Works Department. The construction of 5000 Km

roads will be completed during 2020-21.

24

West Coast Canal

43) The construction of West Coast Canal is progressing in

a time-bound manner with the entry of CIAL partnered

with Kerala Water Ways Infrastructure. Sir, 585 Km long

water way from Bakel to Kovalam will be opened for

transportation in 2020-21.

44) Now the canals are 18 to 20 meter wide. 40 meter width

will be ensured by 2025. If so 50% of the freight

transportation within the state can be made through the

water way. This will give impetus to tourism also.

A scheme for linking water ways with 3 airports, minor

ports, industrial commercial center etc. in Kerala is being

prepared.

Silver Line Project

45) A Greenfield railway track which was mentioned in the

previous budget is going to be a reality. It will be the

work requiring the highest investment in Kerala. Aerial

survey has been completed. Alignment will be

determined next. Land acquisition procedures will be

started in 2020. Once the land is acquired, it could be

completed within 3 years. Several International

Agencies are ready to invest in this project.

46) This is not just a rail track, but will have a new service

road and 5 townships. It will be able to reach Kasaragod

from Thiruvananthapuram within 4 hours for ₹1457/-.

Time also could be saved. It is expected that there will

be 67740 daily commuters in 2024-25 and 147120

commuters in 2051. Even though there are 10 stations,

there will be short distance trains to the 28 feeder

25

stations. Ro-Ro facility for transporting vehicles and

freight at night time will be available in this rail. One

third of the ticket charge is expected as non ticket

revenue. Employment will be provided for 50000 during

construction and for 10000 on permanent basis.

47) Discussions are going on for availing loan at lower rate

from International Agencies including Japan

Development Agency with 40 or more years of

repayment period. Some major investment organisations

have come forward for investment in the development of

townships. Today, 95% of transportation in Kerala

depends on road. This is not at all desirable. There will

be an eco-friendly fundamental change in the transport

structure of Kerala when the water way and rail

development are added.

Kochi Green Mobility Zone

48) Sir, ‘Seamless Mobility for Kochi’ project has received

an award from Central Ministry of Urban Affairs. An

eco-friendly and integrated urban transport system will

evolve in Kochi. Projects to be implemented in 2020 are

given below.

• New lines for Kochi Metro from Petta to Thripunithura

and from Jawaharlal Nehru Stadium to Kakkanad

Infopark. Expenditure towards this will come to

Rs.3025 crore.

• Integrated water transport in 16 routes with 76 Km

water ways and 38 jetties. Expenditure towards this

will come to ₹682 crore.

• Solar boats for water transport department.

26

• Green vehicles, subsidies for e-autos, electric/CNG

transport buses and KSEB charging stations.

• Smart services such as e-ticketing, mobile app,

CCTV, passenger information system etc. will be

implemented for all bus operators by forming a

cluster. Unified ticket card will be introduced for

metro, water transport and buses. Award has been

received for this project.

• Arrangements will be made for creating maximum

non-vehicle travel facilities. Kochi Metro Zone Project

for safe foot-path, cycle track, road-safety, metro rail –

water transport connectivity etc. Expenditure towards

this will come to ₹239 crores.

• An amount of ₹2.5 crore is earmarked for Kochi-

Metropolitan Transport Authority which supervises all

these projects. Sir, construction works amounting to

₹6000 crore are allocated for Cochin City including the

above mentioned works, important over bridges and

other roads. It may be noted that Railway over bridges

and flyovers have not been included in it.

Tourism

49) Kerala Tourism has overcome two flood ravages.

Effective marketing has played a vital role in this. 18.5

percentage growth could be achieved in the number of

domestic tourists and 8.24 percent for foreign tourists in

2019. ₹320 crore is earmarked for development of

tourism. Out of this, ₹63 crore is allotted for marketing.

50) Kerala Boat League was one of the most important

tourism announcements in the last budget. Kerala Boat

27

League was successfully organised by completely

emphasising the sports, entertainment and tourism

potential of boat race. Boat League will be highlighted

as the main attraction in this year’s tourism marketing.

Financial assistance will be given to ‘Jalamelas’ which

do not come under the league. Necessary changes will

be introduced in the implementation. An amount of

₹20 crore is earmarked for Kerala Boat League and

other ‘Jalamelas’.

51) When future possibilities are taken into consideration,

Spices Route Project is the most elaborate tourism

project. The theme of this circuit is the international path

traveled by spices of Kerala from ancient times similar to

that of Chinese Silk Route. China and East Asian

countries, Africa and Europe will be partners in this.

UNESCO has expressed interest in this. We are

presently implementing heritage preservation projects,

centered on our port cities. Among them, the heritage

projects in Muziris and Alappuzha have moved a lot

further. Activities of tourism circuits centered at

Thalassery are going on. The plans of Kozhikkode,

Ponnani and Thankassery ports are being formulated.

Muziris Heritage Project will be commissioned in

2020-21. This is not merely a tourism project. This

journey along the Muziris historical monuments isa

historical study tour as well. The profit from Muziris

company will be utilised for encouraging and helping the

school study groups for this purpose.

52) At least a dozen museums in Alappuzha could be

opened to the public in 2020-21. Ormatheruvu project

28

focused on erstwhile Gujarati regions will also be

inaugurated. Conservation activities of heritage

mansions constructed in 19th century including

Churches/Mosques/Temples educational-health-commercial

institutions etc. will be completed. When these activities

are added with canal renovation works aided by KIIFB,

Alappuzha will get a rebirth as a heritage city.

53) Special emphasis is given to tourism projects in Malabar

region. The attractiveness of Malabar cruise will be

enhanced with the inauguration of National Water Way.

Sir, a project will be formulated with the co-operation of

Devaswom Board for the renovation of temples in its

antiquity, facing ruin and having architectural beauty like

that of Mahadeva Temple at Koothattukulam. An

amount of ₹5 crore is earmarked for this. A pilgrim

tourist circuit will be envisaged by the name,

“thatwamasi”. Fund will be provided after preparing the

outline for it. ₹10 crore is earmarked for Travancore

Heritage Scheme. An autonomous Hotel Management

College with International standards will be started at

Dharmadom.

Industries

54) A new vigour is evident in Kerala’s industrial sector. The

share of industrial sector in state’s domestic revenue

which was 9.8 percent in 2014-15 has raised to

13.2 percent in 2018-19. In national factory production,

the share of Kerala has increased to 1.6 percent from

29

1.2 percent. Investment promotion strategies to

strengthen this trend have already been explained.

55) KMML has invested ₹65 crore for its expansion from its

own profit. TTP pollution control systems have been

completed. Keltron’s co-operationin defensesectoris

progressing. On getting accreditation from railway,

Autocast’s foundry is moving towards bogie

manufacturing. Kerala Automobiles have launched

e-auto in the market. Thus the public sector is

progressing. In total, an amount of ₹280 crore is

earmarked for the Public Sector in 2020-21.

• Travancore Titanium Products - ₹ 21.5 crore

• Travancore Cements - ₹ 10 crore

• K S D P - ₹ 20 crore

• K E L - ₹ 21 crore

• TELK - ₹10 crore

• TRACO Cables - ₹ 9 crore

• United Electricals - ₹ 6 crore

• Steel Industries & Forging - ₹ 7.1 crore

• Autocast - ₹20 crore

• S I L K - ₹ 10 crore

• Metal Industries - ₹ 3 crore

• Kerala Automobiles - ₹ 13.6 crore

• KELTRON - ₹ 17.7 crore

• Kerala Ceramics - ₹ 15 crore

• Kerala Clays and Ceramics - ₹4 crore

30

• S I D C O - ₹ 17.9 crore

• Bamboo Corporation - ₹ 5.8 crore

• Handicraft Corporation - ₹ 5 crore

• Spinning Mills - ₹33.8 crore

• Working Capital - ₹ 30 crore

56) It was KSDP that I have quoted in all the previous

budgets, as the symbol of progress of the industrial

sector. In 2015-16 the production was ₹28 crore. The

target to achieve in 2020-21 is ₹150 crore . Non beta

lactum injectable plant, with an investment of ₹40 crore

will be inaugurated in the month of April. The essential

medicines for post organ transplantation surgery will

commence production by then. The average daily

expenditure of 5 essential medicines that is usually

used for thiscomes to ₹250, whereas KSDP is going to

make available these medicines for ₹28. Like wise, the

cost of medicine for cancer can also be reduced. For

this, construction of an Oncology Park with the aid of

KIIFB in the 6.4 acre land near to KSDP will begin in

2020-21. The responsibilityfor managing the park

restswith KSDP. Out of the allocation of Medical

Services Corporation an amount of ₹50crore will be

made available as advance for medicine. New

automatic high pressure moulding line will be

established in Autocast for bogie manufacturing.

57) The construction of building for the new Pharmaceutical

Manufacturing Unit of HOMCO has been completed.

This will be commissioned in 2020-21 after installing

machineries and obtaining certifications. An amount of

31

₹10 crore is additionally earmarked for the completion

of this new factory. An amount of ₹4 crore, to be

distributed as advance compensation to employees of

Excel Glass is yet to be disbursed. This amount will be

made available in 2020-21.

58) The outlay for Medium and Large Scale Industrial Sector

including investments in Public Sector Enterprises is

₹468 crore. Of this, ₹109 crore is for KSIDC and ₹92

crore is for KINFRA. The construction of all industrial

parks mentioned in the last budget is progressing swiftly.

Expatriate Investments and Safety

59) The changes effected in the Central Budget on the

definition of expatriates and taxes imposed on them is a

huge set back for us. The Central Government is not

ready to give due consideration to the expatriates,

whose contribution is critical for compensating the trade

deficit of the country. Sir, the outlay for NORKA which

was ₹30 crore in 2019-20 is raised to ₹90 crore. An

amount of ₹36 crore was additionally sanctioned in the

previous year over and above the budget allocation. In

the 5 year tenure of the previous government, the

allocation to NORKA was only ₹82 crore.

60) Top most priority is given to the rehabilitation of

expatriate returnees.

• An amount of ₹27 crore is allocated for the

Santhwanam Scheme. The family income limit for

availing benefits has been raised to ₹1.5 lakh from

₹1 lakh.

32

• An amount of ₹9 crore is allocated for Pravasi

Kshema Nidhi.

• An amount of ₹18 crore is allocated for givinginterest

subsidy for 4 years and capital subsidy to small scale

entrepreneurs.

• ‘Care Home’ or ‘Garden of Life Project’ is a scheme

meant for ensuring the usually available facilities to

the old age members of Malayalee families settled

abroad. NORKA will provide 5 acres of land to the

company formed for this purpose,being the share of

the first unit.

• An amount of ₹2 crore is for NORKA Business

Facilitation Centre.

61) Foreign employment will be promoted.

• An amount of ₹1 crore for comprehensive revision of

job portal with the help of an expert team.

• An amount of ₹2 crore for technical enrichment.

• An amount of ₹5 crore for conducting crash finishing

course to 10000 nurses for overseas employment.

The finishing school will include various foreign

language training, certification of language proficiency

as stipulated by each country, technical refreshment

programme, IT skills and soft skills. This project will

be implemented through Community Skill Parks of

ASAP, the skill development initiative of Higher

Education Department.

33

62) Assistance programmefor expatriates

• An amount of ₹3 crore for Pravasi Legal Aid Cell,

Awareness campaign andfor providing 24 hour

helpline.

• An amount of ₹2 crore for financial assistance

toPravasi organizations.

• An amount of ₹1.5 crore for airport evacuation and

airport ambulance.

• An amount of ₹3 crore is allocated to Malayalam

Mission for starting on-line malayalam learning

course, libraries in various study centres of Malayalam

Mission and Internet radio.

63) An amount of ₹12 crore for Loka Kerala Sabha and Loka

Samskarika Mela.

64) Two important schemes initiated for the welfare and

financial prudence of the expatriates are Pravasi Chitty

and Pravasi Dividend. Both the schemes will be fully

operational in 2020-21.

• In the Pravasi Dividend Scheme government will

guarantee a monthly dividend of 10% with subsidy for

investment.

• Where as in Pravasi Chits, along with all the benefits

of chits, expatriates will be ensured the benefits of

pension and insurance as well. Expatriate Malayalees

can sponsor projects in Kerala. Incentives will be

made available to expatriate organisations for charity

in Kerala.

34

Kerala Bank

65) Kerala Bank has become a reality. This enormous

achievement is the result of constant and vigilant efforts

for the past 3 years. The merger of District Co-operative

Banks as per statute has already been completed.

Software unification for products and services is

progressing swiftly. The deployment of staff is also

under consideration of the Government.

66) Today, Kerala Bank is the second largest bank in Kerala

to have one lakh crore business. Our target is to attain

a business of 3 lakh crore rupees and 5000 touch points

including primary co-operative societies. A banking

network like this, having an organic linkage with Kerala,

will be a big support for our Small and Medium Scale

Agricultural and Non-agricultural Enterprises. This will

create a big leap in domestic investments. The wealth

of the state will be utilised for the development and

benefits of the State. Kerala Bank will move forward

adhering to Reserve Bank guidelines and firmly

following co-operative principles and values. The main

benefit of Kerala Bank is that, it will notloot the public.

The practice of squeezing the public through exhorbitant

service charge, fees, penalty etc. will not be followed.

For providing all sorts of modern technological services

to the public, our primary co-operative societies will be

equipped through their apex banks by partnering them in

core-banking system.

35

III

DECENTRALISED APPROACH

People’s Plan

67) We are entering into the 25th anniversary of People’s

Plan by next August. From the advent of People’s Plan,

Kerala stands first in India in the decentralisation of

power. While centralised mechanism is important for

large infrastructures and investment, decentralisation of

power is inevitable for small scale production, service

sectors etc. where public participation is essential. We

are adoptingsuch a dual developmental approach.

68) The decentralised planning experience of the past

25 years needs to be analysed. Each Grama Panchayat

and Municipality has to prepare a comprehensive report

on what they have achieved, not achieved and

advancements made in new directions as envisaged in

the Development Report of 1996. Working groups will

be constituted for preparing the report in the month of

May. After getting the approval of the new administrative

council, this report will be subjected to elaborate local

deliberations.

69) KILA will organise an extensive conference in November

2021 for presenting these experiences. Besides

thescholars who participated in the International

Seminar in 2000, other research fellows, peoples

representatives, volunteers, officials etc. will participate

in the conference. An amount of ₹1 crore is allocated

for this.

36

We for Ourselves

70) Kerala is going to witness another people’s campaign in

the 25th year of People’s Plan. Comprehensive local

plans will be formulated for preventing disasters due to

climate change. Such an extensive disaster

prevention/response programme at the local level will

be first of its kind in the world. The training with

necessary guidelines for this has been completed.

Before finalising the annual plan, draft reports will be

prepared. The core aspect of this report illustrates what

should be the preventive actions and precautions to be

taken on each ward, based on the lessons learned

during the natural disasters in 2018 and 2019, if such an

eventuality re-occur. This will be discussed in all

gramasabhas. Based on these discussions, at least

some projects will be included in the plan.

River Rejuvenation

71) Sir, let me draw the attention of this August House to the

few lines of the poem penned by Thwahitha Shir of

Ottappalam Vaniyamkulam School in Palakkad District

Youth Festival competition.

‘Tree

River

Wind

It was history researchers who

discovered those words destroyed by termites.

It is not just enough to discover them.

37

The meaning should be made clear.

I racked my brains.

I Google – searched.’

The poem which begins with this line is a strong criticism

of the next generation towards the atrocities being

committed by our generation to Mother Nature. Sir, we

ought to protect our nature and rivers for the next

generation.

72) The river rejuvenation projects announced in the

previous budget has been carried along by Haritha

Mission.The Meenachal River Project in Kottayam is the

most prominent example for this. Canals and rivers at a

length of 1450 KM have already been cleansed. Many

clogged streams have been opened. Barren land to an

extend of 4000 acreswere cultivated. 20 acres

ofencroachments were reclaimed. Novel water tourism

projects have been initiated.Sir, we bagged an award at

the National level for the way in which the Employment

Guarantee Scheme for these activities were utilised.

Killiyar in Thiruvananthapuram is another example for

this. An amount of ₹20 crore is earmarked as additional

assistance to similar river rejuvenation projects.

73) By including them in Employment Guarantee Schemes,

activities relating to strengthening of river banks by

organic means are taken up for cleansing and carpeting

the banks with geo textiles. 2000 KM rivulets having a

width of more than 200 meter were cleaned under the

aegis of Haritha Mission alone. Sir, the total length of

38

rivulets in the state is 82000 KM. Of this, 50000 KM

rivulets, will be cleaned before the end of 2020-21.

74) Centralised septage plants are inevitable. Presently,

septage in Kerala is entirely being drained into water

bodies. This has to be avoided. An amount of ₹5 crore

each will be given as a special grant for the

developmental activities of Panchayaths,that ensure

land and public consent for the installation of septage

plants.

75) Utilising the Employment Guarantee Scheme recharging

of wells and renovation of ponds will be undertaken

extensively. In 2020-21, 50,000 wells will be recharged.

25,000 ponds will be renovated or new one’s will be

constructed.

Suchitwa Keralam

76) It will take many more years to clean all the water

bodies. But the goal of modern solid waste management

is achievable. The local self government institutions

presented such a tableau and varied experiences in the

‘Haritha Sangamam 2020’. In 2021, 500 Panchayats

and 50 Towns including Thiruvananthapuram will attain

total cleanlinessstatus in Solid Waste Management. For

this, strict criteria is to be adhered to. Waste of

households and institutions should be segregated at its

source itself. Biowaste should be processed at the

source itself or nearby. Non Bio degradable waste shall

be collected through Green Work Force (Haritha Karma

Sena) and brought to the Resource Recovery Centres.

Green Protocol should be complied with in all Public

39

functions and Public Offices. The public roads have to

be kept clean. There should not be any dumping

centres. I would consider it as a proud achievement that

amajor part of Kerala has changed this way. In order to

achieve the same all Local Self Government Institutions

must earmark funds and projects in the Plan. An

amount of ₹20 crore will be made available to Clean

Kerala company from the outlay of Suchitwa Mission as

a revolving fund.

77) Ayyankali Employment Guarantee Scheme occupies an

important position in the cleanliness drive of cities. The

outlay for this is raised to ₹100 crore.

78) 12000 public toilets will be constructed in 2020-21. In

addition tothe renovation of toilets in existing petrol

pumps, toilets in “take a break rest centres” under

Kudumbashree and toilets sponsored by other

Government agencies and public sector undertakings

Local Self Government Institutions will start toilets. This

is essential for attaining complete clean status for the

State.

Fruit Crop – Horticorp Campaign

79) The third item of people’s Green Initiative will be the

Fruity / Horti Corp Campaign announced by the Hon’ble

Chief Minister on the eve of new year. This is a

campaign for planting one crore saplings of fruit bearing

trees each year for a decade. The expenditure for this

will be around ₹54 crore each year. This is expected to

create an additional income of ₹50,000 crore in the state

within 10 years. Along with this, horticulture and

40

floriculture will be expanded by extensively constructing

rain shelters. Amount has been earmarked to Agriculture

Department for giving technical assistance to this and

for making nurseries. Besides this, there will be a

stipulation that Local Self Government Institutions will

earmark 10 percent of their annual plan for this green

campaign. Thus, an amount of ₹1000 crore will be

expended towards the expansion of fruity and horti

crops in 2020-21. An amount of ₹7 crore is earmarked

for Haritha Keralam Mission.

Local Employment Assurance Programme (LEAP)

80) A programme for giving employment to 1.5 lakh people

per year will be started through Local Self Government

Institutions in non agrarian sector through local

ventures. Employment should be created at the rate of

one person per thousand persons. This may be

implemented through Kudumbashree, Co-operative

Society or Private Entrepreneurs. A special programme

incorporating this should be included in all local plan

documents. Initiatives such as non plastic products,

value added farm products and other small scale

industries may be included in these initiatives. The

financial assistance for this may be made available from

plan fund. The block and district panchayats ought to

support for entrepreneurship training and marketing.

Start up Mission is now focusing on IT sector. Start ups

such as small scale agricultural processing initiatives,

electrical and mechanical initiatives will be given special

encouragement.

41

81) Technical assistance is essential for implementation of

the above mentioned projects. Technical Educational

Institutions of the locality will be linked with this

campaign. All units of NSS should participate in this.

Internship programme will be started for young

engineering graduates at the rate of 3 in Corporation /

District Panchayath, 2 in Block / Municipality and 1 in

Grama Panchayath. During the Onam season, all Local

Self Government Institutions should publish the

appraisal report of all the above five programmes.

82) An amount of ₹12074 crore is earmarked for Local Self

Government Institutions in 2020-21.

• Development Fund - ₹7158 crore

• General Purpose Grant - ₹1717 crore

• Maintenance Grant - ₹2943 crore

• Urban Service Delivery Projects - ₹255 crore

• Of the Development Fund ₹1221 crore is for

Scheduled Caste Sub Plan and ₹183 crore is for

Scheduled Tribe Sub Plan.

83) Apart from this, ₹6285 crore will also be made available

to Local Self Government Institutions in

2020-21.

• Centrally Sponsored Schemes - ₹1411 crore

• State Sponsored Schemes - ₹1027 crore

• Chief Minister’s Village Road

Development Programme - ₹2400 crore

• Rural Development - ₹344 crore

42

• Urban Development - ₹1945 crore

• Life Mission - ₹2000 crore

84) Utmost care has been taken to ensure that treasury

restriction hasnot adversely affected the activities of

Local Self Government Institutions. Local Self

Government Institutions have been exempted from 20%

plan cut of 2018 and 30% plan cut of 2019.

Hunger Free Kerala

85) Sir, food for the hungry, water for the thirsty, blanket for

the chilled and bed for the exhausted is the definition for

independence given by Sri. Balachandran Chullikad.

The government too share the same perspective. A

scheme has been announced in the last budget to make

Kerala a hunger free state, in the country which has

been sliding down in its ranking in the World Hunger

Index. Food Department has given final shape to this

scheme. This scheme will be implemented through

voluntary organizations& institutions. They mayfreely

deliver food to bedridden patients at home. Or else food

courts could be established for providing meals at a

maximum rate of₹25. At least 10% of meals should be

given free through sponsorship. The Civil Supplies

Corporation after ascertaining the number of

beneficiaries will provide rice at ration rate and groceries

at subsidized rate to the willing institutions. Based on

this criteria, Ambalappuzha, Cherthala Taluks will be

declared as hunger free zones fromApril onwards. This

scheme can be expanded to more areas in 2020-21. An

amount of ₹20 crore is set apart as special financial

43

assistance for this. Under the aegis of Kudumbashree,

1000 food courts will be started for providing food at

₹25/-.

86) In the plan fund, ₹62 crore is earmarked for Civil

Supplies Corporation. ₹1036 crore is the food subsidy.

Additional fundsfor food subsidy and market

interventions will be made available, as required.

Women empowerment & Kudumbasree Branding

87) Sir, the cover page of Gender Budget Overview Report

is a painting of Anujath, a 9th standard student from

Thrissur. This painting was viral in social media. The

colour combination and composition reminiscencing

Mughal era surely will attract our eyes. But what striked

my mind was not that. It was the neighbourhood

activities of the mother and peer mothers that Anujath

painted. Sir, the Kudumbashree’s contribution in

showcasing the visibility of women in Kerala is immense.

During 2016-17 the total outlay for schemes for women

was ₹760 crore which was 4% of plan outlay. Sir, in the

budget 2020-21, this amount is enhanced to ₹1509

crore which is 7.3 percent of plan outlay. If the special

component for women in other Schemes is also taken

into account, the total share for women will come to

18.4%. This was 11.5% during 2017-18. This gender

priority for women has become the hallmark of the

Budget expenditure of Kerala Government.

88) It was stated in the last budget that Kudumbashree

would introduce brand based centralized marketing for

12 micro entrepreneurship items. As part of this,

44

agreement has been executed for manufacturing

products such as umbrella, coconut products and curry

powders on cluster basis with common name and selling

it through the outlets of Civil Supplies Corporation.

Kerala Chicken has been launched in the market.

Already around 1000 poultry units are working under

Kudumbashree. Under the brand name ‘Nutrimix’,

general nutritious food items were introduced in the

market. 212 handicraft products were launched online

in the market. Also, 275 Building construction units run

by women, 206 Multi Task teams, 76 Event

Management Teams were started. Agreement has been

executed for starting more than 100 “Take-A-Break”

centres.

‘Wrinkled and grey,

With its outer cover cracked,

The unread autobiography’

is the evaluation of feminine life by Vijila Chirappad.

The main duty of every modern society is to rewrite such

episodes.

89) Along with strengthening of the above mentioned

activities, the following targets have been fixed for

Kudumbashree in 2020-21.

• She Lodge enterprises in all cities.

• 200 Kerala Chicken outlets.

• 1000 Green initiatives in partnership with Green Work

Forces.

• 50 Hotels with a daily turn over of ₹30,000/- per day.

45

• 1000 Hunger free hotel initiatives.

• Management of 500 toilet complexes.

• 5000 new labour initiatives.

• 14 Tribal Micro Projects based on Alappuzha Model.

• Bio Group Farming in 20000 acres.

• 500 Gender Resource Centres

• Home shops in all districts based on Kozhikode

model.

• Kudumbashree Internship Program.

• ₹3000 crore bank loan at 4% interest.

90) An amount of₹250 crore is set apart for Kudumbashree.

In addition to this, an amount of ₹200 crore will be made

available from Rebuild Kerala for livelihood initiatives.

The total budget of Kudumbashree is ₹600 crore

including assistance from Local Self Government

Institutions. Apart from this, Centrally Sponsored

Schemes for urban areas amounting to ₹950 crore are

being implemented through Kudumbashree.

91) The outlay for Women & Child Development Department

including Centrally Sponsored Schemes is ₹1053 crore.

Dr.Saradakutty makes the society vigilant that the culprit

for the heinous crime that shatters the surprises and

wonder world of girl children is not an individual, but the

whole society. Sir, with such a realisation the

government is approaching the budget. The

government and the society have the responsibility to

find a solution to such atrocities committed on woman

46

and children. Maintenance assistance for Nirbhaya

Home is raised to ₹10 crore.

• Anganwadis that lack proper building facilities and

enough children in attendance will be integrated to

make Model Centres working in day time.

• Secured rooms for women travelers will be arranged

in Working Women’s Hostels.

• Facilities will be provided for Specially Challenged

Children in selected Anganawadis.

• Smart Anganawadi Scheme will continue.

• International Trade Centre will be opened in Gender

Park for marketing the commodities produced by

women.

Sir,

‘How do we dismantle the chains that

bind the soul’

Thus doubts, Girija Pathekkara. One of the most

important task of LDF government is to set free women

from all such visible and invisible fetters.

Complete Housing

92) Third stage of Life Mission will commence in 2020-21.

40,000 houses will be made available to scheduled

community and fisher folks. Another 60,000 persons will

be given house / flats. The emphasis at this stage is to

provide land to those homeless who do not own land.

They will be provided with land and house where ever

47

land is available. It is proposed to construct flats in

other areas. The land for this has been found in all the

districts. Construction of 10 flat complexes has already

been commenced.

93) The outlay for Housing Department is ₹61 crore. Of this,

₹45 crore is for Housing Board. The important projects

are the rented flats for government servants at

Kozhikode, new projects for the homeless, Aswas

Kendras, Working Womens Hostel and Grihasree. The

land of Housing Board at Vallavanad will be acquired by

government at Ponnum Vila (premium rate). The price

given for this can also be utilised for expansion of the

afore mentioned schemes.

Towards Educational Excellence

94) In the poem of Sachithanandan ‘Monologue of an Indian

student’ there is a mention of a golden river which flows

through the pure and mischief filled minds of children

depositing dreams. Let me say it with pride that the

golden river Educational Protection Drive is flowing

through Public Educational Institutions of Kerala by

depositing dreams of excellence. The main component

of the renewed vigour in the educational sector is the

expansion of facilities in the public education sector. Sir,

there are umpteen avenues opened for the children to

express their flair of imagination through the

opportunities that spreads open by the General

Education Protection Campaign. In the school wiki page

of Meenangadi Higher Secondary School student Faikha

48

Jaffer, who wrote a poem ‘Book of shelf have something

to say’

‘Life itself

Was tacked as letters

On pieces of paper.

To narrate stories of the dark age,

Ann, she awaits.’

While going through these lines, we are unlocking the

key to the readings and thoughts of a 10th standard

student in our public education school. The public

schools will be renovated in such a way as to nurture

the imagination of children. Construction of buildings

measuring 80 lakh Sq.feet at a cost of ₹3500 crore

funded from KIIFB Plan Fund, MLA Fund, MP Fund &

LSGD Schemes are in progress. This renovation is

unparalleled in history. An amount of ₹20 crore has

already been given to Aided Schools as Challenge

Fund. This scheme will continue in 2020-21 also.

95) The total outlay for General Education sector is

₹19129.55 crore. All schemes meant for improving

academic excellence and allied educational

programmes will continue. The following schemes will

also be taken up.

• A scheme will be formulated for procurement of new

furniture in new buildings . Old furnitures will be

reused.

• Solar units will be installed step-by-step in all schools.

49

• A talent scheme will be formulated to foster the

aesthetic flair of students in school clusters.

• ‘Sradha Schemes’ will be expanded.

• Labs will be modernised.

• School uniform allowance will be enhanced to ₹600

from ₹400.

• The Scheme ‘Prathibhatheeram’ will be expanded.

• The allowance of Pre-Primary Teachers is enhanced

by ₹500

• The wages of cooking staff is enhanced by ₹50

Universal Health Security Scheme

96) ‘Karunya Arogya Suraksha Padhathi’ is implemented in

Kerala ensuring in-patient treatment up to ₹5 lakh per

family for 41.37lakh families. The expenditure for this is

₹700 crore. Where as the central assistance provided is

only ₹140 crore. Along with this, the families who are

outside this scheme and not included in any other health

schemes will get the benefits of the old Karunya

scheme.

97) As part of Ardram Scheme, 350 Primary Health Centres

were upgraded into Family Health Centres. Out Patient

service is available here even in the afternoon. Lab and

pharmacy are also available. The renovation of

secondary and tertiary hospitals is progressing on a war-

footing. Treatment can be made available to 80% of

cancer patients in Public Health Sector itself soon.

Steps are being taken to establish Cardiology

50

Department in all District Hospitals and Trauma Care &

Dialysis Units in all Taluk Hospitals.

98) Government have approved the Palliative Policy.

Palliative network has become a public health initiative

that spread to every nook and corner of Kerala. This

people’s intervention should be expanded to preventive

measures and to monitoring of severity of illness. The

Health force, along with extension activists in the sub

centres, Asha workers and voluntary workers will take

up this responsibility. The Aardram Mission could be

transformed into a people’s movement, only through

this.

99) ₹10 crore is additionally earmarked as a special

assistance for Local Self Government Institutions which

make the database on the health condition of people,

evaluate patients through screening, provide treatment

and ensure disease prevention activities and arrange

palliative care to the needy including mentally

challenged. Honorarium for Asha workers is enhanced

by ₹500/-.

100) A comprehensive support system will be created with

the help of modern technology for palliative treatment

and elderly care. Patients will be under surveillance of

automated camera. Artificial Intelligence tools will be

used to monitor the health condition remotely and alert

the nearest palliative centre/health work in use of

emergency. The facilities will be inbuilt in the system to

provide basic health indicators such as blood pressure,

pulse and oxygen status to the health centre. Including

camera and other accessories, a patient will need

51

around ₹10000 for this. Pilot projects for this will be

implemented at select places in Kannur and Alappuzha.

₹10 crore is additionally earmarked for this.

IV

PACKAGES

Coastal Area Package

101) The coastal area package announced in the previous

budget worth ₹5000 crore will be implemented in

5 years. ₹380 crore is earmarked as plan fund in the

current year for Fisheries sector including Harbour

Engineering Department.In addition to this, ₹750 crore

will be spent through KIIFB in 2020-21.₹64 crore for

schools, ₹201 crore for hospitals, ₹57 crore for sea wall

and pulimuttu, ₹209 crore for harbour, ₹100 crore for

fish market, ₹150 crore for roads are the projects. The

construction of Chethi and Parappanangadi harbours

will be commenced in the summer. ₹50 crore is

available in the budget for other harbours. As part of Life

Mission7000 houses worth ₹280 crore will be

constructed in the fisheries sector. The project

amounting to ₹2450 crore from Rebuild Kerala has been

approved for the rehabilitation of Fishermen folks in the

coastal area with ₹10 lakh per family.

102) Some of the projects mentioned above may take many

years to complete. Even if such expenditure in the

succeeding years is set aside, the outlay for coastal

package for 2020-21 will come to ₹1000 crore.

Unfortunately the fisheries sector is unaware of this

unprecedented developmental intervention. District level

52

review meetings will be conducted regarding this . Okhi

fund has been expended properly. Even then, critics still

air false allegations from some corners. Hence a social

audit will be conducted by a team headed by Smt. Aruna

Roy on Okhi expenditure.

103) An amount of ₹15 crore is earmarked for development of

other allied jobs for the women infisher folk families and

₹6 crore for fish vending women. Fish storage centres

in all fishing harbours and online marketing of the same

will be implemented through Matsyafed.

Kuttanad Package

104) Kuttanad is the best example for the effectiveness of

flood rehabilitation activities in Kerala. After the floods in

2018, 126054 people belonging to 50000 families were

relocated within one week without any epidemic or

emergency. An amount of ₹10000 each was given to

54066 families. 1920 houses were totally damaged in

the flood. Of this, first installment assistance was given

to 1880 houses for rebuilding. Reconstruction of 627

houses has been completed. ₹274 crore has been

given for maintenance of 49083 partially damaged

houses. An amount of ₹152 crore was distributed as

agrarian compensation.

105) The Planning Board has prepared a package of ₹2400

crore for Kuttanad. The 2nd Kuttanad package has to be

implemented consideringthe experiences learned from

flood.

53

• The first step is to get rid of the plastic wastes from

the bottom of the back waters with the help of fisher

folks.

• The absorption capacity of back waters will be

enhanced by mechanised lifting of muddy sludge from

the back water swamp. ₹10 crore is earmarked for the

above purposes.

• A massive scheme with the financial assistance of

KIIFB will be implemented to draw sludge and

sediment from the back waters and canals and to

utilize it for widening the outer bunds in order to

strengthen it with suitable methodologies. The rubbles

and slabs will be used in essential places.

106) Such a comprehensive scheme with people’s

participation is being implemented in Nedumudy

Panchayath on an experimental basis with the aid of

Kanalpy, Alappuzha. ₹30 lakh is sanctioned as a special

assistance for this. Employment Guarantee Scheme

(MNREGS) is primarily used for this. With the help of

Coir Corporation, National Coir Research and

Management Institute (NCRMI) and Pulinkunnu

Engineering College the Grama Panchayat will rebuild

one of the paddy field bunds using slurry and geo

textiles. Suitable grass carpeting will be provided.

Based on this model, not only in Kuttanad area but also

in all the Panchayaths on the banks of Vembanadu, a

scheme for deepening and cleaning of canals with

people’s participation will be implemented in the ensuing

summer.

54

107) Backwaters can be kept clean only if towns and villages

on its banks are kept waste free. The major chunk of

people’s programme to clean the canals similar to roads

in Alappuzha town will be completed by this year. The

practice of releasing waste from Alappuzha into the

backwaters will be ceased. Septage plants will be

established urgently.

108) An amount of ₹74 crore is earmarked to the Irrigation

Department for flood control measures in Kuttanad. This

will be utilized for construction of outer bunds and

removal of sediments. In the current year’s plan, an

amount of ₹20 crore is earmarked for Agriculture,

₹11 crore to Inland fish farming and ₹7 crore to Duck

farming. The outlay for Roads and Bridges of PWD for

which permission has been granted or construction is

underway amounts to ₹385 crore. Works worth

₹50 crore is sanctioned under Chief Minister’s Village

Road Renovation Scheme. Apart from this, ₹50 crore is

also earmarked for post flood road renovation works.

Thus ₹750 crore will be expended from the budget

provision for Kuttanad.

109) As part of Kuttanad package, sanction is accorded for

many important schemes which will be completed in two

or three years.

• Kuttanad Drinking Water Scheme - ₹291 crore

• Thottapally Spillway - ₹280 crore

• Alappuzha – Changanassery

Elevated Road - ₹450 crore

• Pulinkunnu Hospital - ₹150 crore

55

• Other KIIFB Projects - ₹ 541 crore

• From Rebuild Kerala - ₹200 crore

110) The dream of cleansing Kuttanad by intake of saline

water with openingof Thaneermukkam bund for at least

one year will be commenced on completion of Kuttanad

Drinking Water Project. A new agrarian calender needs

to be discussed and approved by Padhashekara

Samithies.

Wayanad Package and Branded Coffee

111) Malabar Coffee and Carbon Neutral Wayanad Scheme

announced in the previous budget is the focal point of

Wayanad Package. The total expenditure expected for

this is ₹500 crore.

• Mega Food Park worth ₹150 crore in 100 acres of

KINFRA. Its construction will start in 2020-21.

Common processing facilities for branded coffee and

fruits will be located here.

• An amount of ₹13 crore is earmarked for Agriculture

Department for classifying coffee plantation areas to

micro regions considering the local characteristics,

ensuring adequate preservation methods and farmer

producer societies.

• An amount of ₹10 crore is earmarked for providing the

drip irrigation to coffee. In addition to this, an amount

of ₹4 crore is provided in micro irrigation project.

• Carbon neutral project will help Wayanad for branding

coffee. Presently, the carbon emission is 15 lakh

tonne. Existing trees could sequester 13 lakh tonne

56

out of this. 60000 tonne carbon emission will be

reduced through panchayath level projects.

• Bamboo will be planted in 6500 hactre for

sequestering the remaining carbon. 70 lakh trees will

also be planted.

• Following the Meenangadi Panchayath model,

farmers will be provided ₹50 per tree per annum from

the third year onwards. Loans are to be repaid only

on the occasion of cutting trees. For this, ₹200 crore

will be given to banks as deposits from green bonds.

• Biodiversity will catalyze eco tourism. An amount of

₹5 crore is earmarked for tourism development.

112) By including in the annual plan an amount of ₹127 crore

is earmarked for Wayanad district. In addition to this,

more amount will be sanctioned for controlling wildlife

menaces. An amount of ₹25 crore will be spent from

TSP for creating job opportunities for tribal women and

for other welfare activities. An amount of ₹719 crore is

sanctioned from KIIFB for various projects. Medical

College will also have KIIFB assistance. D.P.R for

alternate Wayanad Tunnel Project is being prepared.

Works worth ₹65 crore is being undertaken by PWD in

the district. An amount of ₹214 crore is provided for

Chief Minister’s Rural Road Restoration Programme and

Rebuild Kerala Initiative. Thus, the outlay for Wayanad

District Package, which is to be implemented within

three years, is ₹2000 crore.

57

Idukki Package

113) Idukki basically needs a development strategy for

augmenting the production and productivity of spices

such as tea, pepper, cardomom and fruits such as jack

fruit, by ensuring ecological balance. An amount of

₹100 crore will be set aside for Idukki district in 2020-21

from Agriculture, Soil - Water Conservation and Animal

Husbandry departments. The construction of Spices

Park and Agro Park will be intensified. A special

consideration will be imparted to winter crops in

Vattavada.

114) It is important to retain Idukki as a region suitable for

agriculture and inhabitation. A proper consensus

regarding land utilisation should emerge from the grass

roots. For regaining the lost nutrients and bio

components of agricultural lands, remedial measures

will be adopted on the basis of soil testing. We have to

move towards organic farming. Watershed basedland

use planning will be implemented with public

participation. An amount of ₹200 crore will be made

available from Rebuild Kerala for such an elaborate

programme. Local disaster management plan, sanitation

and water conservation programmes and tree plantation

campaigns have to be connected with this. An amount of

₹10 crore is additionally earmarked for the initial

activities of this programme.

115) Sir, a special directorate will be set up with the aim of

achieving the prosperity of plantations in Kerala.

Housing projects for plantation labourers will be made

part of Life Mission.

58

116) Tourism clusters and circuits will be formulated. Special

thrust will be given to farm tourism. Second phase of

Munnar Botanical Garden, Tourism Centre attached to

Idukki dam under Tourism Department and Hydel

Tourism are the major activities. An Airstrip will also be

set up at Idukki.

117) In the backdrop of damages due to flood, special

consideration is given to Idukki district for public works.

Administrative sanction of ₹130 crore has been

accorded under Chief Minister’s Rural Road Restoration

Project and Rebuild Kerala Initiative. Public roads and

bridges worth ₹722 crore are now under construction.

The construction of Bodimettu – Munnar National

Highway worth ₹278 crore is going on. Sanction for

works amounting to ₹1000 crore has been accorded

from KIIFB. This includes ₹100 crore to educational

sector, ₹80 crore to drinking water, ₹70 crore to Health,

₹40 crore to Sports and₹300 crore to Public Works.

Approximately ₹400 crore worth works are under

appraisal stage. Construction of the Medical College will

be intensified. From all these, an amount of ₹1000 crore

will be expended in 2020-21 as part of Idukki Package.

118) Sir, detailed review meetings on implementation of

Idukki, Wayanad and Kuttanad packages will be

conducted before the month of April. An amount of ₹90

crore is earmarked for Kasargode Package in 2020-21.

V

AGRICULTURE AND TRADITIONAL SECTORS

Coconut Serried Land of Kerala

119) This scheme is for substantially enhancing the coconut

production and ensuring at least 20 percent hike in the

59

price through value added products. Each ward will be

supplied with 75 Coconut seedlings in 2020-21.The

price of coconut will be made available to the farmers by

avoiding middlemen and their income will be

supplemented by value addition of coconut and its by-

products.Scheme for connecting coconut villages with

co-operative societies is ready. In the first phase,

40 co-operative societies will be partnered with this.

Necessary assistance with 90 percent subsidy will be

given to the societies for establishing coconut husk mills.

A subsidy of 25 percent will be made available on

investment for coconut oil and other coconut products.

Same assistance will be extended to coconut producer

companies also. Labour Societies of these banks will

pluck coconuts and provide the price to the farmers

through online on the same day of harvest. Share of

value addition will be given as bonus also.

‘Jeevani’ - Our Agriculture, Our Health

120) This is the scheme for ensuring healthy food by

encouraging backyard farming. An amount of ₹18 crore

is earmarked for this. In addition to this, ₹7 crore is

earmarked to VFPCK for vegetable sector. These three

agencies namely Local Government Institutions, VFPCK

and Agriculture Department will invest a total amount of

at least ₹500 crore in the vegetable sector. Self

sufficiency can be achieved substantially if

co-ordination is ensured . An amount of ₹3 crore is

earmarked for Pineapple processing centre at

60

Vazhakkulam. This centre and Agro Park at Thrissur

will have facilities for making wines from fruits.

121) We should be able to procure small scale production

surplus of fruits and vegetables after domestic

consumption in a single platform. An electronic platform

in the model of Uber has been developed by Kerala

Development Innovation Strategy Council (K-DISC) for

this purpose. Farmers, Co-operative Societies, Banks,

other producers, large and small scale merchants and

consumers are being brought together in a network on

this Kerala Food Platform. Details regarding where,

when and how these transacted commodities, are

produced, will be made available in this platform.

Quality Certification facility as per Partnership

Guarantee Scheme will also be available in this

platform. Integrated Farming method implemented by

Palliakkal Co-operative Bank at Ernakulam district has

been currently incorporated in this platform. It is aimed

to operationalize this platform by also including the

production of Vadakkanchery Municipal area on a pilot

basis.

Barren-land free villages

122) An amount of ₹118 crore is earmarked for Paddy

Cultivation. Agriculture Department will provide ₹5500

as subsidy per hectare. Local Government Institutions

are extending multifaceted support to agriculture as part

of barren-land free project. An amount of ₹2 crore is

earmarked for “Irippoo Krishi” in Kole area under

Operation Double Kole and ₹2 crore is earmarked for

61

Pokkali cultivation. At present, there are 26barren-land

free villages. It is expected that, this will be raised to

152 in 2020-21.

123) The outlay of Agriculture sector is ₹764 crore. If the

contribution of other agencies are taken into account,

there will be an approximate expenditure of ₹2000 crore

in agriculture sector during this year. ₹52 crore is

earmarked for marketing mechanism, ₹20 crore for crop

insurance and ₹28 crore for soil card project. Emphasis

for soil water conservation activities is continued. An

amount of ₹94 crore is made available for this in the

current year.

Integrated Rice Park and Rubber Park

124) Integrated Rice Park and Rubber Park were announced

in the previous year. Rice Park in Palakkad under

Co-operative sector will commence operation in 2020-21.

Detailed Project Report (DPR) for two Rice Parks under

Industries Department is ready. An amount of

₹20 crore is earmarked. Work will commence in

2020-21.

125) The first phase of Rubber Park will be established in the

500 acre land remaining after the requirement of News

Print Factory. As the transport connectivity, water

connection and electric connection are already

available, operation of the Park could be commenced in

2020-21 itself. The land required for the development of

second phase of Rubber Park will be acquired in 2020-21.

62

Self Sufficiency in Milk production

126) We are able to produce 94 percent of our milk

requirement in the State itself. This budget also aims at

continuing the Milk production strategy, which has

proved to be successful, more intensively. Total outlay

of Animal Husbandry sector is ₹422 crore. Out of this,

₹54 crore is earmarked for Public Sector Undertakings

and ₹75 crore to Veterinary University. An amount of

₹40 crore is earmarked for marketoriented dairy farms

and milkshed projects. An amount of ₹20 crore is

earmarked as financial assistancefor Dairy Societies

and ₹15 crore for Cattle feed subsidy.

Community Micro Irrigation

127) The scheme for implementing drip irrigation technique

for horticulture and fruit bearing trees is intended to be

extended on the basis of farmers’ collective . The trials

carried out by farmers of Palakkad Chittoor and

Vadakarapathy region are great successes. It was not

only able to double the productivity but also to halve the

weed control expenditure and electricity charges. Based

on this model, an amount of ₹14 crore is earmarked in

this financial year for integrated community micro drip

irrigation project in 50 acres of land each in 14 districts.

128) A total of ₹864 crore is earmarked for irrigation. So far,

an amount of ₹1051 crore has been expended on

Moovattupuzha Valley irrigation project, which was

commissioned in 1974, with an estimated cost of

₹21 crore. An amount of ₹230 crore is earmarked for

clearing pending bills of irrigation projects. It will be

63

commissioned in the month of April. An amount of ₹61

crore is earmarked for projects related to interstate river

water basins of Kabani, Bhavani & Pambar. The new

project on the anvil is the Attapadi Valley Irrigation

Project.

Modernization of Coir Industry

129) In 2015-16, coir production was below 10000 tonne. In

2020-21 this will become 40000 tonne. The lion’s share

of fibre requirement for this will be produced in Kerala

itself. This coir will be converted into traditional coir

products or geo textiles.

• 400 mechanized mills, 2000 automatic spinning

machines and 200 automatic geo textile looms are

being established.

• Coco Log production factory, rubberized mattress

production factory and mechanized geo textiles

factory will be started under the aegis of Coir

Corporation,

• Instead of Coirfed plastics, Coirmulching sheets

production factory will be started.

• Three type of products will be produced in thecoir

composite factories of Foam Mattings. These are

coirboards made using only 20 percent of resin,

boards made up of coir and bamboo mat and boards

made up of coir pith.

• An agreement has been made with the multinational

company Dutch Plantin to establish a coir pith

processing company at Valayar.

64

• Coirfed will act as a service centre for providing coir

pith inoculum and its services to various Indian cities.

Technology is provided by NCRMI.

• 25 start-ups will be established under the leadership

of young engineers to supply geo textiles.

130) Mechanization will not affect the labour or labourers of

traditional sector. Their produce will be processed by

government ensuring minimum price and marketed by

providing subsidy. It is targeted to enhance the average

annual income of the coir spinning society labourers

which was ₹13000 in 2015-16 to over and above

₹50000, during the year 2020-21. An income of at least

₹600 per day will be ensured for the labourers of

mechanized sector.

131) An amount of ₹112 crore is earmarked in 2020-21.

Apart from this, an amount of ₹130 crore is intended to

be spent through NCDC assistance. An amount of

₹50 crore is expected from Coir Board for starting 10

coir clusters. An amount of ₹25 crore is additionally

earmarked for one time settlement of small scale

producers who had availed loan under the remote

scheme of the 70s, settling the loan arrears of societies

in district banks, gratuity of the employees, pension fund

deposits, and also for clearing electricity bill arrears.

Revival of Cashew Industry

132) In 2019, Cashew Development Corporation has

provided 161 days of employment and Capex has

provided 214 days of employment. 480 factories

functioned. 2020-21 will be an year of intense drive to

65

reopen the other closed factories and to complete the

revival activities of the industry. For this an amount of

₹135 crore is earmarked.

• An amount of ₹20 crore is earmarked for giving

compensation to the owners of the factories which

were taken over in 1970s.

• An amount of ₹20 crore is earmarked for interest

subsidy of private cashew factories that come under

the revival package.

• An amount of ₹20 crore is earmarked for clearing

gratuity arrears.

• An amount of ₹50 crore is earmarked for Cashew

Board.

• An amount of ₹20 crore for the modernization of

Cashew Corporation and CAPEX.

• An amount of ₹5 crore for cashew cultivation.

133) Capex and the Cashew Development have not become

ready to adhere to the conditions laid out in the

previous budget to start an escrow account for repaying

the price of raw cashew supplied by the Cashew Board.

This condition must strictly be followed. From this year

onwards Cashew Board will intervene in the cashew

kernel market also.

Handloom

134) An amount of ₹28 crore is earmarked in the plan for the

Handloom sector. In addition to this, an amount of

₹105 crore is earmarked for Handloom Uniform Scheme

and ₹20 crore for income guarantee scheme, making a

66

gross amount of ₹153 crore. A new handloom

processing centre will be opened at Naadukaani at a

cost of ₹6 crore.

135) An amount of ₹23 crore is earmarked for power loom

mills.

Other Traditional Industries

136) An amount of ₹16 crore is earmarked for Khadi & Village

Industries. Apart from this, an amount of ₹15 crore is

earmarked for giving rebate for Khadi produced in

Kerala. Around ₹20 crore also will be available from

income guarantee scheme.

137) An amount of ₹3 crore is earmarked for Handicraft

Development Schemes. An amount of ₹5 crore is

earmarked for Bamboo Development Corporation. A

production facility for bamboo composite boards will

start functioning in 2020-21. Large scale bamboo

planting activities will be taken up as part of Haritha

Mission Campaign.

138) Toddy Board will commence operation in 2020-21 .

VI

OTHER SECTORS

Kerala Financial Corporation

139) Kerala Financial Corporation is the most efficiently

functioning State Financial Corporation in the country.

The non performing assets which was 10.57 percent in

2015-16 was reduced to 5.77 percentthrough one time

settlement and intensive arrear recovery programmes.

67

The base interest rate was slashed to 9 percent from

14.5percent. As per RBI stipulation risk weighted asset

ratio must be a minimum of 9 percent. The ratio of

Kerala Financial Corporation is 19 percent.Fresh loan

disbursementin the year 2015-16 was ₹1025 crore.

This will increase to ₹1500 crore in 2019-20. Whilethe

profit will raise to ₹20 crore from ₹5 crore. In the

backdrop of having ‘Double A’ rating, the Kerala

Financial Corporation has resolved to make a giant leap

in loan disbursement in 2020-21. For achieving this the

equity base of the firm must expand substantially.

140) Sir, the share capital of Kerala Financial Corporation is

being increased by ₹200 crore. Based on this, the

Kerala Financial Corporation can additionally mobilise

₹2000 crore from the market. The public sector

undertakingsin Kerala will be provided with loans

amounting to ₹300 crore from Kerala Financial

Corporation. The interest of this loan will be paid

directly by the Government.

Kerala State Financial Enterprises

141) The Kerala State Financial Enterprises is celebrating its

Golden Jubilee. In comparison to 2015-16, the turnover

of chits rose by 40 percent and became ₹22744 crore.

While the total turnover rose by 50 percent and became

₹43647 crore. The operational profit rose to ₹509 crore

from ₹236 crore. New schemes will be formulated and

implemented in the Golden Jubilee year.

� Pravasi Chits will be made available to malayalis

residing in other states also.

68

� Steps will be taken to make Pravasi Chits more

attractive.

� Gold loan will be enhanced to ₹5000 crore.

� 50 smart branches will be opened.

� Kudumbashree Chits will be started.

Small Scale Industries

142) The most vibrantindustrial sector in Kerala is the Small

Scale Industries Sector. An amount of ₹36 crore is

earmarked for industrial parks and the development of

common facility centers. An amount of ₹70 crore is

earmarked for various entrepreneurship development

programmes. An amount of ₹10 crore is earmarked for

the revival of sick units and ₹10 crorefor interest

subsidies.

Commerce

143) An amount of ₹16 crore is earmarked for the commercial

sector. Of this, ₹10 crore is for setting up permanant

marketing cum exhibition complex. An amount of ₹20

crore is additionally earmarked for settling the pension

arrears of Traders Welfare Fund.

Higher Education

144) The plan outlay for higher education sector is

₹493 crore, of which ₹125 crore is for Kerala, Calicut,

Kannur, Mahathma Gandhi, Sanskrit, Malayalam & Law

Universities. An amount of ₹16 crore is earmarked for

Higher Education Council and ₹9 crore for KCHR. An

amount of ₹50 crore is set aside for ASAP. An amount

of ₹5 crore is earmarked for ‘K.R. Narayanan Institute of

69

Visual Sciences and Arts’. Of this, ₹2 crore is for

museums for video documentation. Various scholarships

such as ‘Erudite’, ‘Scholar Support’, ‘Walk with Scholar’,

‘Fostering Research in Students’, ‘Orise’ etc for

improving academic standards will be continued. Sir,

non plan share of some universities is low. Necessary

enhancement will be provided later after examining the

financial condition.

145) KIIFB aided infrastructure development of Colleges and

Universities will be implemented in 2020-21.

Construction of a ₹100 crore worth laboratory in Cochin

University is underway. ₹50 – 100 crore each will be

alloted from KIIFB for other Universities. An amount of

₹142 crore is alloted for the construction of College

buildings.

146) A program will be implemented in 2020-21 for the

renovation of laboratories in all government colleges.

Each college has to prepare and submit special projects

required for this. The amount required for this will be

made available from theMajor Infrastructure Head.

147) Higher Education Council will determine the best three

departments in universities from the domains of science,

arts & literature and social studies, and special awards

will be provided for its development. Necessary posts

and fund for infrastructure development will be provided.

An amount of ₹20 crore is specially earmarked for this.

Higher Education Council itself will select researchers

for Kairali Research Award.

148) Sir, the Thrissur campus of Calicut University is

functioning in the ancestral home and property of

70

Dr.John Mathai. This house will be renovated and

developed as a memorial for first generation economists

in Kerala namely P.J.Thomas, V.R.Pillai, Padmanabhan

Pillai and Dr.K.N.Raj. The Chief Advisor for this project

will be Prof.M.A.Oommen. An amount of ₹2 crore is

earmarked for ‘N.R.Madhavamenon Interdisciplinary

Centre for Research Ethics and Protocols’ under Cochin

University. An amount of ₹2 crore is sanctioned for the

history musuem of CMS College which is celebrating its

bicentenary.

149) Appointment of sufficient teachers for courses

sanctioned in previous years has not been done. A

Government order will be issued within the month of

March for the creation of 1000 posts as per the criteria

of 16 hours teaching per week.

150) It is necessary to sanction new courses in the higher

education sector. For that, a committee chaired by the

Secretary, Higher Education will be assigned to

scrutinize the applications received from colleges. It is

intended to sanction a total of 60 courses. Eligible

colleges will be selected on the basis of certain criteria.

• New generation inter disciplinary courses will be

started.

• Colleges need to have ‘A plus’ grade in NAAC

accreditation. Exemption will be given to government

colleges.

• Exemption will be given only to the colleges newly

started by Scheduled Tribe Trusts.

71

• Legacy and expertise of the college in that subject,

the number of teachers and condition of nearby

colleges will be considered for sanctioning courses.

• Permanent posts will be created only after five years.

Courses should be conducted on temporary / contract

basis till then.

151) The Gulati Institute of Finance and Taxation will

continue its national level consultations in Central –

State financial relations. An international seminar on

Labour Code will be conducted in the month of

November with the co-operation of Labour Department.

A national seminar on new Emigration Act conducted in

association with NORKA. For this, an amount of

₹5 crore is sanctioned to GIFT.

Technical Education

152) The outlay for technical education is ₹210 crore. An

amount of ₹22 crore is earmarked for Cochin University

and ₹18 crore each for Technical University, Kerala

State Science and Technology Museum and IHRD. An

amount of ₹37 crore each is earmarked for engineering

colleges and ₹40 crore each for Polytechnics.

153) K-DISC is providing leadership to Kerala Medical

Technology Consortium. A programme has also been

formulated for incorporating emerging technology in

government. An amount of ₹25 crore is earmarked for

K-DISC.

72

Drinking Water

154) Never ever in the history of Kerala Water Authority has

it undertaken such large number of drinking water

projects.

• 61 works worth ₹4384 crore from KIIFB.

• 283 works worth ₹1254 crore from AMRUT.

• 1448 works worth ₹1562 crore from State Plan.

• 39 works worth ₹736 crore from NABARD.

• 52 works worth ₹620 crore from centrally sponsored

drinking water project.

155) Thus, activities are going on for attaining a production

capacity of 10 crore litre per day from 1891 projects

worth ₹8523 crore. The time bound completion of these

works is a challenge. These projects could be

completed on time and drinking water scarcity in the

State could be resolved substantially, if the enthusiasm

and efficiency shown by the employees of Water

Authority during floods in restoring the production

capacity, that was 52 percent non functional, within two

weeks and for ensuring drinking water and sewage

treatment in Sabarimala; could be replicated.

156) Moreover, one third of the above projects are to relay

the existing supply pipelines. Through this, distribution

loss could be reduced substantially and per unit cost of

water could be lowered. Today, the average cost of

one kilo litre water is ₹23.72 . But the average price

charged for water is ₹9.50. This gap has to be reduced.

A fundamental restructuring is inevitable for this.

73

157) An amount of ₹675 crore is earmarked for Kerala Water

Authority. An amount of ₹400 crore will also be

available from central schemes. Bottled water from

Water Authority will be made available on commercial

basis in 2020-21. An amount of ₹2 crore is sanctioned

for the completion of Aruvikkara Bottled Water Project.

In the backdrop of Alappuzha drinking water project

getting delayed, an amount of ₹4 crore is sanctioned

additionally for rejuvenating old sources, as a part of an

emergency plan for overcoming drought.

Forest

158) The outlay for Forest Department is ₹179 crore. An

amount of ₹56 crore is additionally expected from

centrally sponsored schemes. In addition to ₹110 crore

from KIIFB for reducing human – wildlife conflict and an

amount of ₹24 crore will be made available from plan.

Animals in Thrissur Zoo will be rehabilitated to Puthur in

2020.

159) Sir, thenovel intervention in forest sector in 2020 is the

project for rehabilitating deep forest inhabitants. Forest

could only be conserved by retaining them as a large

contiguous area. Human interference should be limited

to the outskirts of dense forests. For this,an amount of

₹106 crore is sanctioned from Rebuild Kerala.

Scheduled Classes

160)

‘Not indeed before the king

Or anyone for that matter

74

May be stand

Crest fallen,

Hands

Not held behind in acquiescence

But self-assuredly folded in the front.

May he be so guarded

He clamours

Time after time’

Thus, the poet Asokan Marayur draws the desire of

Scheduled communities for self confidence.Sir,

improvement in financial status is essential for social

progress. But in India, in general, what is the attitude

towards scheduled communities? In no other Indian

state development fund for Scheduled Tribes has been

allocated in proportion to the population. With the

discontinuation of five year plan such a principal itself

has become irrelevant. But in Kerala, 12.64percent is

allocated over and above the proportion of population.

Outlay for Scheduled Caste Sub Plan is ₹ 2730 crore

and that for Tribal Sub Plan is ₹786 crore. In addition to

this, an amount of ₹458 crore will be available from

centrally sponsored schemes.

161) Top most priority is for housing. An amount of ₹685

crore under Scheduled Caste Sub Plan and ₹247 crore

under Scheduled Tribe Sub Plan are earmarked for,

land for landless, completion of incomplete houses,

75

share of Life Mission and for study rooms. In 2020-21,

housing will be provided to 15000 Scheduled Caste

families and 5000 Scheduled Tribe families from Life

Mission. Under the study room projects started by this

government, study rooms have been constructed for

8465 housesso far.In 2020-21, 4000 study rooms will

also be constructed.

162) Sir,

‘Swimming against the flow

Shouting out ‘Arppo’ boisterously,

A fistful of world clusters,

Returning to the boat……..’

The above lines of M.R.Radhamani include the great

desire for social progress by earning education. Next to

housing, the priority is for education. An amount of

₹386 crore is earmarked to Scheduled Caste Sub Plan

and ₹115 crore to Scheduled Tribe Sub Plan for

education. For model residential schools, an amount of

₹93 crore is earmarked through KIIFB and an amount of

₹23 crore from plan. Gothra Bandhu Scheme for

providing education to the newly admitted Scheduled

Tribe students in schools will be implemented all over

the State by appointing the competent youth from the

Scheduled Tribe community, have qualifications such as

TTC and B.Ed, as mentor teacher.

163) The program announced in the previous budget for

giving placement to youths of Scheduled category by

76

implementing vocational skill trainingis successful.

Placement has been given to 4896 persons so far. Of

this, 383 got job in foreign countries. It is targeted to give

employment to 10000 persons in 2020-21.

Welfare of Other Communities

164) An amount of ₹101 crore is earmarked for the welfare of

backward communities. Of this, ₹53 crore is for OEC

educational schemes. Including central share, ₹36 crore

is available for Scholarships. An amount of ₹50 lakh is

allocated as share capital for Pottery Development

Corporation.

165) An amount of ₹42 crore is earmarked for Minority

Welfare

166) An amount of ₹36 crore is earmarked for the Welfare of

Forward Communities.

Geriatric Care

167) In this sector, formation of 25000 elderly neighborhood

groups under the aegis of Kudumbashree was the most

significant event in the geriatric care in 2019-20.

‘Snehitha calling bell scheme’ was also formulated for

elderly people living alone. But the proposal ‘Pakal

Veedu’ for 2-3 wards has not been implemented

properly. Local Self Governments are bound to set

apart at least ₹290 crore from their plan fund for elderly

people. This must be included in the local plan for

2020-21. There is no need to construct new buildings.

Existing libraries and rented houses can be used for

this. Elderly neighborhood groups should be associated

with these centers. ‘Sayamprabha Scheme’ of Social

77

Justice Department, having an allocation of ₹6.5 crore,

has to be integrated. An amount of ₹24 crore is

earmarked for ‘Vayomithram Project’. Sir, the

programmes for the geriatric welfare are spread across

all departments. By adding these together elder budget

will be prepared likewise gender budget and the same

will be presented along with budget documents.

168) The amount of ₹100 crore, that was sanctioned to

Kerala Agricultural Workers Welfare Fund Board, will be

given at once. In 2020-21, ₹50 crore is also allocated.

Protection of the Differently Abled

169) Kerala got the award of Central Government for being

the best differently abled protecting state for formulating

a policy frame work suitable to support each phase in

the life cycle of differently abled. Immunization

including MMR vaccine for preventing deformities in the

gestation period itself is the outset. The next phase will

be the screening for detecting deformities in the infancy

itself and to initiate remedial measures. For this, an

amount of ₹50 crore is earmarked for schemes like

‘Anuyathra’, ‘Sruthitharangam’ and ‘Aarogya Kiranam’.

170) Differently abled children ofmild and moderate natureare

usually admitted in normal schools. There is also

Autism Park, in which differently abled children are

taught either in special or common class room on

experimental basisirrespective of their intensity of

deformity.

171) Sir, an amount of ₹40 crore is earmarked as financial

assistance to 290 special schools run by voluntary

78

organizations and others. Apart from this, an amount of

₹10 crore is earmarked for the protection of differently

abled who are above the age of 18. The

additionalamount required for this should be met from

the plan outlayfor the Education Department. An amount

of ₹35 crore is earmarked for Bud Schools. An amount

of ₹1 crore is earmarked for different art centre for the

training of differentially abled artists and for providing

employment to them as professional performers.

172) An amount of ₹40 crore is earmarked for treatment and

care of the differently abled and ₹31 crore is for their

Mental Health Programmes. An amount of ₹9 crore is

for Barrier Free Kerala. A special scheme will be

implemented for making 28 public institutions in the city

of Thiruvananthapuram, as barrier free. An amount of

₹40 crore is earmarked for giving allowance to the

nursing assistant of the differently abled.

173) An amount of ₹217 crore is set apart for this sector

fromthe departments like Social Justice, Education,

Health & Family Welfare and Local Administration.

Apart from this, Local Administrative Institutions are

bound to set apart at least ₹290 crore. A total amount of

more than ₹500 crore is available for expending with

clemency and co-ordination.

Transgender

174) Kudumbashree organises ‘Special Neighborhood

groups’ for transgenders. A Co-operative society of

themhas already been established. An amount of

₹5 crore is earmarked for ‘Mazhavillu’ programme.

79

Culture

175) The outlay of cultural sector is ₹157 crore. Some new

schemes are on the anvil.

• An amount of ₹4 crore for a new building for the

preservation of Palmleef archives.

• An amount of ₹6 crore for International Archives study

and Research centre at Karyavattom.

• An amount of ₹8 crore for the construction of a new

‘Sreechithra Art Gallery’ with most modern

technology.

• An amount of ₹7 crore is set apart for Kerala

Lalithakala Academy. Out of this, ₹2 crore is

earmarked to set up museum in Kerala by engaging

artists on contract basis.

• An amount of ₹3 crore is earmarked for constructing a

suitable heritage monument at Attingal Palace in

connection with 300th anniversary of Attingal riot.

• Financial assistance to the tune of ₹3 crore was

announced in the previous budget for Female

Directors. This will continue. Apart from this, an

amount of ₹3 crore is earmarked for the

encouragement of Directors from Scheduled

categories. Assistance given to one person will not

exceed ₹50 lakh.

• An amount of ₹3 crore is additionally allocated for

promoting amateur drama. Theselected drama will

get a maximum amount of ₹5 lakh.

80

• An amount of ₹5 crore is earmarked for K.M.Mani

Foundation to construct a monument building,

₹5 crore is for taking over E.K.Imbichibava’s house at

Ponnani as monument, ₹1 crore is for Unnayi Warrior

Samskarika Kala Nilayam.

• Ernakulam Public Library is being rejuvenated with an

amount of ₹12 crore from CSR Fund and others. An

amount of ₹1 crore is allocated as State Government

share.

• An amount of ₹75 lakh is allocated to set up Yesudas

Digital Library.

Sports

176) An amount of ₹120 crore is earmarked for Sports and

Youth Affairs. 2020-21 will be the year that is going to

take off a big leap in the amneties of sports in Kerala,

while taking into account of the KIIFB projects also. An

amount of ₹33 crore is earmarked for Sports Council.

An amount of ₹2 crore is allocated for ‘Yogakendra’ at

Aralam.

Port

177) Vizhinjam International Seaport is the most important

project of the Port Department. The construction of

11 KV line, Water Treatment plant and piling of berthhas

been completed. Land acquisition is upto 97 percent.

Whereas, 20 percent of Breakwater construction,

60 percent of Land filling and 60 percent of concreting of

Acropod have only been completed. It is estimated that,

an amount of ₹350 crore is required for the project upto

81

March 2021. This has been met from ₹1000 crore set

apart for major projects. Apart from this, an amount of

₹69 crore is earmarked for Port Department.

Transport

178) An amount of ₹1000 crore is allocated for KSRTC as

special financial assistance. ₹109 crore is earmarked in

plan.

179) An amount of₹111 crore is allocated for Water Transport

Department. Out of this, ₹26 crore is earmarked for

State Water Transport. An amount of ₹75 crore is

earmarked for Coastal Shipping and Inland Navigation

Department.

Civil Supplies

180) An amount of ₹60 crore is earmarked for Civil Supplies

Corporation. Of this, ₹38 crore is meant for the

arrangements of National Food Security Act. An amount

of ₹12 crore is earmarked for therenovation of Supplyco

outlets.

Co-operation

181) The outlay of Co-operative Sector is ₹134 crore. Of this,

the most important is thevarious financial assistance of

₹41 croreto primary credit co-operative societies. An

amount of ₹7 crore is earmarked for the expansion and

diversification of co-operative institutions. 2020-21 will

be an year that Primary Co-operative Societies of Kerala

are going to take vital steps for procuring of coconut

and its value addition. An amount of ₹10 crore is

earmarked for promoting these activities.

82

Kerala State Lottery

182) The turn over of Kerala State Lottery in 2015-16 was

₹5445 crore. This will be raised to ₹12000 crore in

2019-20. The target for 2020-21 is ₹15000 crore. The

evil ploy of lottery mafia is the main threat faced by us.

They succeeded in unifying the GST rate to 28 percent.

The Act and rulesframed by us is, having, a great

barrierto their illegal activities. They have challenged

these Acts in the Court. Along with effective legal fight

theKeralites should be arrayed together against this

lottery mafia. For this, the co-operation of all is

requested for. Comprehensive software update of

Lottery Department will be implemented this financial

year. A mechanism in which authenticity of Lottery

ticket can be verified by the public is about to come.

Uniformed Forces

183) An amount of ₹193 crore is earmarked for the

modernization of Police and Vigilance Departments.

Apart from this, ₹60 crore will be received from centrally

sponsored schemes including state share.

184) An amount of ₹16 crore is earmarked for renovation of

Jail and ₹10 crore for the welfare and rehabilitation of

prisoners.

185) Outlay of Fire & Rescue Service worth ₹70 crore is

almost completely for ensuring modern equipments and

technical amneties.

186) An amount of ₹12 crore is earmarked for Excise

Department. Out of this, ₹5 crore is for ‘Vimukthi’ – a

De-addiction programme.

83

187) Outlay of Motor Vehicle Department is ₹39 crore. Of

this, ₹6 crore is for road safety measures.

Other Regulatory Departments

188) Top priority for technical renovation of Treasuries will be

continued. ₹20 crore is set apart for this. More

Treasury buildings will be taken up for renovation.

189) A total amount of ₹86 crore is earmarked for Land

Revenue Department. Out of this, ₹42 crore is for

computerization and ₹18 crore is for setting up of Smart

Revenue office.

190) An amount of ₹1034 crore is earmarked for State

Disaster Management Department.

191) An amount of ₹305 crore is earmarked for Labour

Department. ₹20 crore is earmarked for the scheme for

guest labourers.

192) An amount of ₹84 crore is earmarked for State Audit and

₹19 crore for State Insurance.

193) Reconstruction of Registration offices through KIIFB

assistancewill almost be completed this year. An amount

of ₹10 crore is set apart for renovation and digitalization

of Registration Offices.

194) An amount of ₹15 crore is earmarked for the technical

renovation of GST Department and for the installation of

surveillance camera network.

195) An amount of ₹10 crore is set apart for Legal Metrology

Department.

196) An amount of ₹9 crore is earmarked for Printing &

Stationary Department.

84

197) An amount of ₹2 crore is earmarked for Economics &

Statistics. An amount of ₹64 crore is expected from the

Central Government towards the survey activities of this

Department.

198) The11th Pay Revision of government employees will be

implemented in this year. DA arrears will be given in

phases next financial year. Considering the opinion of

Government employees, House Building Advance will

be restored in the manner that the Government will

provide the same directly.

Constitutional Institutions

199) The outlay of Judiciary is ₹33 crore. This is in addition

to the Court Complexes now under construction.

200) PSC - An amount of ₹5 crore is earmarked for

construction activities and ₹3 crore for computerization.

201) Legislative Assembly – construction of new apartments

is progressing on a war footing.

Others

202) An amount of ₹38 crore is earmarked for information

and publicity.

203) An amount of ₹30 crore is set apart for State Planning

Board. Out of this, ₹18 crore is for strengthening of

District Planning Offices.

85

VII

TAX PROPOSALS

204) As indicated in the preface the state treasury is in

serious financial crisis due to the discrimination by

centre and economic slowdown. However, it is made

clear from preceding paragraphs that it is not intended to

cut expenditures resulting stagnation of developmental

activities. The budget declarations have a higher

expenditure of 15% above the revised estimate for

2019-20. A fiscal policy with expenditure cuts will end in

making the possibility of recession a reality. But this

situation of high increase in expenditures vis a vis not

achieving the expected growth in revenues, cannot

continued herein after.

Austerity Measures

205) Sir, the efficiency of expenditure has to be increased

while curtailing avoidable frivolous spending. Let me

state certain suggestions, before embarking on the

revenue augumentation measures.

206) It should be possible to exclude ineligible persons from

Governments welfare and service schemes. The

mustering of old age-welfare pensioners will be

completed within the coming days. Even after several

extension of time limits 4.98 lakhs persons have not

turned up or has refused to inform the secretaries of

local bodies to collect the requisite information from their

86

homes. Deceased persons, Government pensioners,

non-residents, non-eligible persons, drawing more than

one pension, married persons drawing widow pension,

etc, will be deleted from the list. Because of these

measures an expenditure of 700 crore rupees is

avoided. This enabled to give a raise of 100 rupees in

pension amount to eligible pensioners, even in this time

of financial crisis. These type of examination of

beneficiaries under various Government schemes will

continue

207) 17614 Number of new posts were created during the

tenure of this Government. It was sanctioned after

intense deliberations and detailed examination.

However, 18119 number of posts were created in

Government aided schools without following these

procedures. 13255 numbers of teachers continues to be

in the protected category. With the implementation of

Right to Education Act, the teacher-student ratio was

reduced from 45 students to 30 per teacher in lower

primary schools and to 35 students in upper primary

schools. It was interpreted that even if there is one

student above this ratio, new posts could be created. At

the sub district level if the AEO approves, posts were

created. Many complaints were received on creation of

such posts. These complaints will necessarily have to be

examined. The situation that one post could be created

87

if the student ratio exceeds by even one student will

have to change. New posts should be created only with

concurrence of Governement. K.E.R will be amended

accordingly.

208) As stated earlier, it is decided to expend 21174 crore

rupees through local bodies in the year 2020-21. All

missions and campaigns are centred on local bodies.

Present staff strength is not sufficient for this. However,

LSGD has 1000 employees in its DRDA and

performance audit wings. Their duties are not relevant at

present. More important tasks has to be done at lower

levels. So, it is decided to re-deploy them. All of them

will be re-deployed before the end this financial year.

209) In State Goods and Service Tax Department

234 number of employees have no work due to the

abolition of check-posts. Out of this, 25 persons have

been re-deployed to Lotteries department and the

remaining will be re-deployed to panchayaths. While

re-deploying, facility will be given to the employees to

opt for local body at their native place.

210) Likewise, all departments will be subjected to detailed

scrutiny on this aspects. Many lower posts have become

irrelevant due to computerisation. Even though text

books are now despatched directly to schools from the

press, is earlier centralised infrastructure is still

continuing. People recruited for various schemes at

88

different times are still continuing even though the

schemes are completed. Engineers remain in many

irrigation schemes even though the works have

completed. At the same time, for local water shed

development programmes, canal cleaning, preparation

of estimates and supervision etc. more engineers are

required.

211) At present there is an order restraining expenditure on

purchase of cars, TA bills, starting new grant-in-aid

institutions etc. This will be implemented strictly. The

new policy is hire cars on monthly rent rather than

purchases. If contracts are entered with EESL, a central

Government institution, to hire electric cars,

Rs.7.5 crores per 1000 vehicles can be saved. It is

expected to avoid excess expenditure of 1500 crores by

aforesaid measures.

Goods and Services Tax

212) Goods and Services Tax has not yielded the expected

revenues. Since the reasons were discussed in the

beginning, it is not intended to repeat the same.

Considering 2015-16 as the base year and applying

14% growth rate should have yielded a revenue of

28416 crores. But only rupees 15030 crores was

collected under GST, upto December 2019. Though the

difference between protected revenue and GST

89

collection has to be compensated, the Central

Government is failing to do so.

213) Our aim is to get out of compensation limit in the

financial year 2020-21. To achieve this the following

actions will be implemented.

1. 75% Offices of SGST department will exclusively

deployed for collection of GST.

2. Though the GST registrations in other states have

doubled since the implementation of GST, no

proportionate increase is observed in Kerala.

Necessary steps would be taken to widen the tax net

by including upto 1 Lakh new registrations.

3. The annual returns for 2017-18, 2018-19 will be

available before the end of March. It will be subjected

to scrutiny and audit. By this, wrong input tax

availment and tax evasion can be detected and

collected.

4. The data received from GST information system will

be analysed using various data analytic methods.

Based on the analytical reports the sectors where

Inspection and audit are required, will be identified.

5. The details of goods vehicles will be collected

through cameras installed at borders. When the

facility to cross verify the details with E-way bill will

be completely operational, smuggling across the

border can be prevented.

6. The business related information gathered from

different sources and third parties will be verified with

the return filed by tax payers

90

7. The genuineness of information furnished while

taking GST registration will be verified after visiting

the place of business. Mobile apps will be utilized for

this.

8. Assistant State Tax Officers will be specially

entrusted to watch proper filing of returns and

payment of tax. They will continuously interact with

the defaulters over phone, visit their business places,

clear the doubts and their responses will be updated

through mobile apps.

9. Red flag reports will be provided to the officers after

analysing the return data with e-way bill, and

information received from external sources.

10. GST surveillance units will be brought under

centralized monitoring system. For the purpose

command centres will be established at Amaravila,

Walayar and Manjeswaram.

11. E-invoice will be made compulsory for evasion prone

goods and services.

12. Amendments in State GST Act will be made based

on the amendments incorporated in the Central

Goods and Services Act as per the Union Finance

Bill 2020.

Kerala Value Added Tax

214) As per the details available from GST Department. The

outstanding tax arrears comes to 13000 crores. The

break-up is as under;

• Rs.400 crores is irrecoverable through revenue

recovery process.

91

• Rs.5000 crores is outstanding against dealers who

have either stopped the business or not migrated to

GST.

• Rs.4500 crores involved in court cases and appeals.

• Rs. 3100 crores balance amount.

215) Considering the previous experiences, a comprehensive

amnesty scheme is declared to collect the outstanding

arrears;

• Entire interest on tax and penalties will be waived.

• Entire admitted tax will have to paid 50% waiver will

be allowed.

• Amnesty will be applicable for all pending tax arrears

including cases pending in appeals.

• Option should be filed on or before 31st July 2020.

• 10% of rebate will be given to the persons who are

remitting arrear demand is lumpsum within 30 days of

receipt of the amnesty order. Those who opting for the

instalments shall pay 20% of demand within 30 days

of receipt of the order and balance amount shall be

paid in four instalments before 31st December 2020.

216) Those who could not settle arrears under previous

amnesty scheme can opt this scheme and credit will be

given to the amounts already paid in under previous

scheme. In addition to this, any amount paid after

receipt of the demand notice shall be credited to tax.

Those who had compounded offences and paid tax in

such proceedings, such tax will be given credit. No

92

refund will be allowed to those cases which opted this

scheme. Other conditions of amnesty will continue.

217) This scheme is applicable to all demands coming the

Kerala Value Added Tax Act, Central Sales Tax Act, Tax

on Luxuries Act, Kerala Surcharges Act and Kerala

Agriculture Income Tax Act. The scheme can also be

opted within 30 days of receipt of the assessment order.

It will be applicable to modified assessments based on

appellate orders. In the case of appeals filed by the

State, this scheme can be opted, based on the demand

in the original assessment order. Those who opt the

scheme shall settle the entire outstanding arrears

together in a financial year. The Commissioner will be

empowered to review cases settled under the scheme

suo-moto.

218) The amnesty scheme for Presumptive Tax payers and

arecanut dealers will be continued. If such dealers opts

this new scheme, continuation of other amnesty scheme

will not be allowed.

219) The dealers were allowed to submit the request for

return revision under Kerala Value Added Tax upto

30th September 2019. Considering the request from the

trade it will be extended upto 31st December 2020.

220) The pending assessments from 2014-15 onwords under

the VAT and Luxury Tax Act which are subsumed in

GST will be completed before 31st March 2021.

93

Assessments will be limited to penalty cases, cases

received from the commissionerate after scrutiny and

detection of irregularities and cases pointed out by

Accountant General in audit.

Kerala General Sales Tax

221) During the budget 2019-20 amnesty scheme was

declared for arrear demand under Kerala General Sales

Tax Act. This scheme will be continued during this year

also.

222) The Bar Hotels which were closed as per the

Government policy and obtained license subsequently

could not file return for the relevant period due to

software related issues. In such cases huge demand

were created against the dealers. Such dealers are

provided with an option to pay tax based on

compounding pattern during the period. All conditions

relating to compounding specified under Kerala General

Sales Tax Act will be applicable to them. As turn over

tax is not a collected tax, the persons who opt this

scheme is eligible for relief of 50% of interest and

complete waiver or penalty. The option for this shall be

filed on or before 31st July and 20% of the demand shall

be paid towards 1st instalment within a month and

balance to be paid in 4 instalments before

31st December 2020.

94

Luxury Tax

223) During the budget 2019, assessment under tax on

Luxuries Act were deemed to be completed in respect of

dealers having annual turnover of Rs.5 lakhs. This relief

is extended to dealers having turnover upto 10 lakhs.

Motor Vehicles

224) Encouraging electric vehicles is the policy of the

Government. For this,

• The tax on electric auto-Rikshaw will be exempted for

the first five years.

• The existing rebate on the first five year tax on new

petrol and diesel autorickshaws will be done away

with. The first five year tax on these vehicles will be

fixed at one time tax of Rs.2500/-

• The onetime tax on new electric cars, electric motor

cycles, Electric private service vehicles for personal

use and electric three-wheelers will be limited to 5%.

225) Vehicles used exclusively for demonstration purposes,

in possession of dealers will be levied 1/15 of the tax of

the vehicles of the same kind for one year. Onetime tax

for 15 years will be levied from such vehicles at the time

of registration.

226) The quarterly tax on multi axle vehicles is higher than

that of registered in neighbouring states. Hence

25 percent reduction is declared on goods vehicles other

than tipper category having registered laden weight

greater than 20000 kg.

95

227) Purchase value is defined in the Motor Vehicles

Taxation Act includes all particulars included in the

invoices issued by the vehicle dealers or manufactures.

When vehicles above Rs.10 lakhs are sold, 1% of tax

has to be collected and paid to the IT Department by the

seller. This will be given credit to the vehicle owner while

paying income tax. It will be clarified in the Act that this

amount will not be includable in purchase value.

228) The tax rate of motor cycles not exceeding value upto

Rs.2 lakhs will be increased by 1% and that of motor

cars and private service vehicles for personal use not

exceeding value of 15 lakhs will be increased by 2%.

Rs.200 crores additional revenue is expected through

this measure.

229) The tax on three wheelers for private use has not been

revised for last 13 years and that of construction

equipment vehicles was not revised for last 10 years.

Hence the tax on such newly registered vehicles will be

increased by 2%. 8 crores additional revenue is

expected.

230) The present License fee of Pollution testing stations was

not increased for last 16 years. It will be increased to Rs.

15,000/-.

231) Now only 74 numbers are designated as fancy numbers

in Kerala Motor Vehicle Rules. More numbers will be

included in this category.

96

232) The tax on education institution buses was not

increased for the last 23 years. The tax on buses for

educational institutions excluding that of Government

and aided educational institutions will be increased in

proportion to the seats. Quarterly tax at Rs.50 per seat

will be levied on buses having upto 20 seats. For buses

above 20 seats the tax will levied at Rs. 100 per seat per

quarter Rs. 6 crore additional revenue is expected from

this.

233) The Government policy is to encourage Public Transport

System. But there are complaints that the tax on stage

carriages based on floor area, was fixed at higher rate.

Hence, 10% reduction of tax will be made as stage

carriages where tax is fixed on the basis of floor area.

234) The existing fee levied under Kerala Motor Vehicle

Rules for displaying advertisement is Rs.20 per

100 Sq.cm area for one year. For digital advertisement it

is Rs.40. The minimum period for display of

advertisements will be limited to one month. The fee for

normal advertisements will be revised as Rs.5 per 100

square cms for one month and Rs.10 for digital

advertisements. Necessary amendments will be made in

Kerala Motor Vehicles Rules for this purpose.

235) Many private motor vehicles which ought to have

registered in Kerala, are now being registered in other

states including Puduchery and continuously used in

97

Kerala. The efforts to collect tax from them is being

hindered by litigations. The condition that these vehicle

owners shall pay the tax from the date on which it was

registered in other states, is causing hardship for those

vehicle owners who intends to change their address to

our state. To alleviate this hardship and to avoid further

litigation, it will be mandated that they need to pay tax in

Kerala only from the date on which NOC was issued

from other states for change of address. All penalties in

this regard will be waived. This concession will also be

available for vehicles currently under litigation.

236) On payment of prevailing rate of tax in Kerala, private

vehicles registered in other states and conducting

service in that state and also in Kerala intermittently will

be allowed to conduct service in Kerala, without NOC for

changing the registration.

237) The onetime settlement for tax arrears, introduced in

earlier years, will continue this year also, with certain

changes. Transport vehicles in arrears of tax for four

years or above can settle the arrears on payment of

30% of the arrears of last 4 years. For non-transport

vehicles it will be 40% of the arrears for last four years.

On settlement all penal actions will be dropped. For

vehicles currently not in service, not usable or sold can

be exempted from future liabilities, on submission of an

98

affidavit. Arrears currently under revenue recovery can

also be settled under this scheme.

238) Transport vehicles registered before 1st January 2007

which have not approached motor vehicle department

for any service for the last 10 years and non-transport

vehicles which are not approached motor vehicle

department for the last 20 years will be removed from

the arrear list of the department. But if it is found

subsequently that the vehicles are conducting service,

tax along with penalty will be levied.

239) As per section 22 of Kerala Motor Vehicle Act, the tax on

vehicles under Government custody is exempted for the

custody period. But, with regard to vehicle taken into

custody for non-payment of tax such exemption will be

granted only on submission of Form G by the owner.

Submission of Form G will be dispensed with in such

cases for exempting tax for custody period.

Registration and Stamp Duty

240) The current novel idea of IT, Block Chain Technology

will be used to reform the registration system. The idea

of smart contract will be implemented by formulating

model formats of deeds.

241) Sub registrar offices will be elevated to ISO levels.

242) To enable ease of doing business registration facilities

will be made available in selected sub registrar offices

on holidays also.

99

243) There is no clear guidelines for valuing buildings other

than flats, for the purpose of stamp duty. This causes

large scale evasion of tax. To settle this amendments

will be made in the Kerala Stamp Act to value such

buildings as per CPWD rates. An additional revenue of

Rs.225 crores is expected.

244) To narrow down the differences between fair value fixed

by Government and market value, 10% increase will be

made in the existing fair value. Rs.200 crore is expected

through is measure.

245) Implementation of largescale projects will raise in market

value of surrounding land. Hence notified land near such

largescale projects will be valued at a maximum of 30%

above the declared fair value. Rs.50 crore is expected.

246) As per the present provisions, offences relating to

Chitties can be compounded only upto 3 times. This limit

will be dispensed with. Further the compounding amount

will be increased.

247) In order to promote registration and mortgage deed by

way of Deposit of Title Deed, Stamp Duty, Registration

Fee were reduced. But they are not registered due to

the lack of statutory provisions. Therefore, suitable

amendments, at par with other states, will be made in

the Registration Act to make compulsory registration of

title deeds.

100

Land Revenue

248) Annual luxury building tax levied on residential building

is revised.

• 278.7 - 464.50 Sq. Meter = Rs.5000

(3000 - 5000 Sq. Feet)

• 464.51 - 696.75 Sq. Meter = Rs.7500

(5001 - 7500 Sq. Feet)

• 696.76 - 929 Sq. Meter = Rs.10000

(7501 - 10000 Sq. Feet)

• Above 929 Sq. Meter = Rs.12500

(Above 10000 Sq. Feet)

20% rebate will be allowed for those who pay luxury

tax in advance for 5 years or above. Additional

revenue of Rs.16 crore is expected.

249) The onetime building tax levied by revenue department

has not been increased since 2014. This rate will be

re-fixed rationally with an upper limit not exceeding

30 percent. Hence forth, the tax rate will be categorised

in to three viz. Grama Panchayaths, Municipalities and

Corporations. A rebate will be fixed to limit the

disproportionate increase with regard to Panchayaths

which were not in the special grade earlier.

250) In order to ensure payment of onetime building tax

before assigning building number by local

self-government institutions necessary provisions will be

included in the respective statute.

101

251) Fees for transfer of registery is revised. Necessary

amendment will be made to treat each schedule in the

deed as a separate unit

• Up to10 Are = Rs.100

• 11-20 Are = Rs.200

• 21-50 Are = Rs.300

• 51- 1 Hectre = Rs.500

• 1 Hectre to 2 Hectre = Rs.700

• Above 2 Hectre = Rs.1000

Additional revenue of 8 crores is expected.

252) A fee of Rs.200 is imposed for issuing location map

prepared by village office after inspecting the location.

Location map issued for Government Housing Scheme

is exempted. Additional revenue of Rs.50 Crore is

expected.

253) A fee of Rs.100 is imposed for issuing Record of Right

(Thandaper) by village office. Record of Right issued for

Government Housing Scheme is exempted. Additional

revenue of Rs.50 Crore is expected.

254) Lease rent of Government Land of Rs.1173.6 crore is in

arrear. An onetime settlement scheme is declared to

settled arrears. 50% relief on the lease rent is given to

the dues based on the lease rent revised in Municipal

Corporation and Grama Panchayath upto 27/01/2016,

05/02/2016 respectively. Additional revenue of

Rs.100 Crore is expected.

102

255) The fees leviable under the schedule of Kerala Paddy

Land and Wet Land Act 2008 and the rules made there

under to alter the nature of un-notified land is revised.

The fee is based on the fair value of adjacent property.

Necessary amendment will be made in this regard.

256) Discussions are going on the matter of de-siltation of

dams in Kerala more than ten years. For various

reasons this has not materialised now international

tender has been floated in case of Mangalam Dam.

Taking into account of this experience steps will be

taken to prepare DPR for mining in case of 12 dams

own by water resources department and 20 dams of

KSEB. Tender proceedings will be initiated within

4 months at least in 6 dams. Finance department will

co-ordinate the procedures.

VIII

CONCLUSION

257) Sir, let me present the summary of the Revised Budget

Estimate for the year 2019-20

Revised Estimate for 2019-20

(₹in crore)

Revenue Receipts 99042.58

Revenue Expenditure 116516.85

103

Revenue Deficit (-)17474.27

Capital Expenditure (net) (-)7958.38

Loans and advances (Net) (-)753.59

Public Debt (Net) 19987.25

Public Account (Net) 5899.00

Overall Deficit (-)299.99

Opening balance at the beginning of the year (-)17.81

Closing balance at the end of the year (-)317.80

258) As per the Revised Estimate of 2019-20, there is a

considerable fall in revenue income and borrowings.

Accordingly, Government has been compelled to reduce

the expenditure. Total expenditure is less than

12 percent compared to what was provided in the

budget. Revenue deficit is higher than the budget

estimate, but lower than in the year 2017-18.

259) Let me present the Budget Estimate for the year

2020-21,

104

Budget Estimate for 2020-21

(₹in crore)

Revenue Receipts 114635.90

Revenue Expenditure 129837.37

Revenue Deficit (-)15201.47

Capital Expenditure (net) (-)12863.21

Loans and advances (Net) (-)1230.70

Public Debt (Net) 24491.91

Public Account (Net) 4750.00

Overall Deficit (-)53.47

Opening balance at the beginning of the year (-)317.80

Closing balance at the end of the year (-)371.27

Additional expenditure announced (-)632.93

Tax Relaxation

Additional resource mobilisation 1103.00

Cumulative Deficit at the end of the year 98.80

105

260) Including the addtional expenses now announced in this

budget speech, the expenditure of 2020-21 is 15 percent

higher than the Revised Budget Estimate of current

year. 58 percent hike is earmarked in Capital

Expenditure compared to the revised estimate. The

State has to be led to a stable financial path without

curtailing the developmental expenditure. With this

objective, addtional resource mobilisation amounting to

₹1103 crore has been announced. Campared to

previous years, there are also proposals in the budget to

raise the own revenue of the State. Hence, it is

estimated that the revenue deficit would come down

from the 2019-20 revised estimate figure of 2.01 percent

to 1.55 percent. Fiscal deficit would be kept at 3 percent

itself.

261) In the present condition, it will take years to reach the

stage when loans could entirely be used for capital

expenditure. Because, as per the existing accounting

system the expenditure for education and health are not

classified as capital investment. But, for us this is the

capital expenditure for human resource development.

So we cannot nullify revenue deficit mechanically. Our

determination to bring it down is visible in the budget

accounts of 2020-21.

262) We are creating a new edition of the Kerala

Development Model. We are making a leap in industrial

106

growth along with protecting our social achievements.

We have seen in the budget a true picture of these

attempts getting results. Sir, the budget for 2020-21 will

create the excitement of the leap towards this direction.

We should hold on firmly to secular renaissance values

for this new edition of our development model and take it

forward. The famous 35th chapter of Geethanjali written

by Rabindranath Tagore is in our blood,

‘Where the mind is without fear,

And the head is held high,

Where the knowledge is free .........’

That is the heaven of freedom. The prayer of Tagore

was to let Indians awake into that heaven of freedom. I

am presenting this budget, once again paying homage

to those young fighters who campaigned fearlessly for

that heaven of freedom.

263) Sir, I am presenting the budget of 2020-21 for the

consideration of this august House.